Division D — Revenue Measures

“(f) Individuals Held Harmless on Wrongful Levy, etc. on Retirement Plan.—

“(1) In general.—If the Secretary determines that an individual’s account or benefit under an eligible retirement plan (as defined in section 402(c)(8)(B)) has been levied upon in a case to which subsection (b) or (d)(2)(A) applies and property or an amount of money is returned to the individual—

“(A) the individual may contribute such property or an amount equal to the sum of—

“(i) the amount of money so returned by the Secretary, and

“(ii) interest paid under subsection (c) on such amount of money,

“(B) the Secretary shall, at the time such property or amount of money is returned, notify such individual that a contribution described in subparagraph (A) may be made.

“(2) Treatment as rollover.—The distribution on account of the levy and any contribution under paragraph (1) with respect to the return of such distribution shall be treated for purposes of this title as if such distribution and contribution were described in section 402(c), 402A(c)(3), 403(a)(4), 403(b)(8), 408(d)(3), 408A(d)(3), or 457(e)(16), whichever is applicable; except that—

“(A) the contribution shall be treated as having been made for the taxable year in which the distribution on account of the levy occurred, and the interest paid under subsection (c) shall be treated as earnings within the plan after the contribution and shall not be included in gross income, and

“(B) such contribution shall not be taken into account under section 408(d)(3)(B).

“(3) Refund, etc., of income tax on levy.—

“(A) In general.—If any amount is includible in gross income for a taxable year by reason of a distribution on account of a levy referred to in paragraph (1) and any portion of such amount is treated as a rollover contribution under paragraph (2), any tax imposed by chapter 1 on such portion shall not be assessed, and if assessed shall be abated, and if collected shall be credited or refunded as an overpayment made on the due date for filing the return of tax for such taxable year.

“(B) Exception.—Subparagraph (A) shall not apply to a rollover contribution under this subsection which is made from an eligible retirement plan which is not a Roth IRA or a designated Roth account (within the meaning of section 402A) to a Roth IRA or a designated Roth account under an eligible retirement plan.

“(4) Interest.—Notwithstanding subsection (d), interest shall be allowed under subsection (c) in a case in which the Secretary makes a determination described in subsection (d)(2)(A) with respect to a levy upon an individual retirement plan.

“(5) Treatment of inherited accounts.—For purposes of paragraph (1)(A), section 408(d)(3)(C) shall be disregarded in determining whether an individual retirement plan is a plan to which a rollover contribution of a distribution from the plan levied upon is permitted.”

“(f) Installment Agreement Fees.—

“(1) Limitation on fee amount.—The amount of any fee imposed on an installment agreement under this section may not exceed the amount of such fee as in effect on the date of the enactment of this subsection.

“(2) Waiver or reimbursement.—In the case of any taxpayer with an adjusted gross income, as determined for the most recent year for which such information is available, which does not exceed 250 percent of the applicable poverty level (as determined by the Secretary)—

“(A) if the taxpayer has agreed to make payments under the installment agreement by electronic payment through a debit instrument, no fee shall be imposed on an installment agreement under this section, and

“(B) if the taxpayer is unable to make payments under the installment agreement by electronic payment through a debit instrument, the Secretary shall, upon completion of the installment agreement, pay the taxpayer an amount equal to any such fees imposed.”

“(21) Attorneys’ fees relating to awards to whistleblowers.—

“(A) In general.—Any deduction allowable under this chapter for attorney fees and court costs paid by, or on behalf of, the taxpayer in connection with any award under—

“(i) section 7623(b), or

“(ii) in the case of taxable years beginning after December 31, 2017, any action brought under—

“(I) section 21F of the Securities Exchange Act of 1934 (15 U.S.C. 78u–6),

“(II) a State false claims act, including a State false claims act with qui tam provisions, or

“(III) section 23 of the Commodity Exchange Act (7 U.S.C. 26).

“(B) May not exceed award.—Subparagraph (A) shall not apply to any deduction in excess of the amount includible in the taxpayer’s gross income for the taxable year on account of such award.”

“(g) Exception for Certain Holdings Limited to Independently-operated Philanthropic Business.—

“(1) In general.—Subsection (a) shall not apply with respect to the holdings of a private foundation in any business enterprise which meets the requirements of paragraphs (2), (3), and (4) for the taxable year.

“(2) Ownership.—The requirements of this paragraph are met if—

“(A) 100 percent of the voting stock in the business enterprise is held by the private foundation at all times during the taxable year, and

“(B) all the private foundation’s ownership interests in the business enterprise were acquired by means other than by purchase.

“(3) All profits to charity.—

“(A) In general.—The requirements of this paragraph are met if the business enterprise, not later than 120 days after the close of the taxable year, distributes an amount equal to its net operating income for such taxable year to the private foundation.

“(B) Net operating income.—For purposes of this paragraph, the net operating income of any business enterprise for any taxable year is an amount equal to the gross income of the business enterprise for the taxable year, reduced by the sum of—

“(i) the deductions allowed by chapter 1 for the taxable year which are directly connected with the production of such income,

“(ii) the tax imposed by chapter 1 on the business enterprise for the taxable year, and

“(iii) an amount for a reasonable reserve for working capital and other business needs of the business enterprise.

“(4) Independent operation.—The requirements of this paragraph are met if, at all times during the taxable year—

“(A) no substantial contributor (as defined in section 4958(c)(3)(C)) to the private foundation or family member (as determined under section 4958(f)(4)) of such a contributor is a director, officer, trustee, manager, employee, or contractor of the business enterprise (or an individual having powers or responsibilities similar to any of the foregoing),

“(B) at least a majority of the board of directors of the private foundation are persons who are not—

“(i) directors or officers of the business enterprise, or

“(ii) family members (as so determined) of a substantial contributor (as so defined) to the private foundation, and

“(C) there is no loan outstanding from the business enterprise to a substantial contributor (as so defined) to the private foundation or to any family member of such a contributor (as so determined).

“(5) Certain deemed private foundations excluded.—This subsection shall not apply to—

“(A) any fund or organization treated as a private foundation for purposes of this section by reason of subsection (e) or (f),

“(B) any trust described in section 4947(a)(1) (relating to charitable trusts), and

“(C) any trust described in section 4947(a)(2) (relating to split-interest trusts).”

“SEC. 13809. RULE OF CONSTRUCTION.

“Nothing in this subpart, the amendments made by this subpart, or any regulation promulgated under this subpart or the amendments made by this subpart, shall be construed to preempt, supersede, or otherwise limit or restrict any State, local, or tribal law that prohibits or regulates the production or sale of distilled spirits, wine, or malt beverages.”

“(14) Special rules relating to hardship withdrawals.—For purposes of paragraph (2)(B)(i)(IV)—

“(A) Amounts which may be withdrawn.—The following amounts may be distributed upon hardship of the employee:

“(i) Contributions to a profit-sharing or stock bonus plan to which section 402(e)(3) applies.

“(ii) Qualified nonelective contributions (as defined in subsection (m)(4)(C)).

“(iii) Qualified matching contributions described in paragraph (3)(D)(ii)(I).

“(iv) Earnings on any contributions described in clause (i), (ii), or (iii).

“(B) No requirement to take available loan.—A distribution shall not be treated as failing to be made upon the hardship of an employee solely because the employee does not take any available loan under the plan.”

“(IV) subject to the provisions of paragraph (14), upon hardship of the employee, or”

“(3) Special rule for puerto rico.—Each population census tract in Puerto Rico that is a low- income community shall be deemed to be certified and designated as a qualified opportunity zone, effective on the date of the enactment of Public Law 115–97.”

“SEC. 45Q. CREDIT FOR CARBON OXIDE SEQUESTRATION.

“(a) General Rule.—For purposes of section 38, the carbon oxide sequestration credit for any taxable year is an amount equal to the sum of—

“(1) $20 per metric ton of qualified carbon oxide which is—

“(A) captured by the taxpayer using carbon capture equipment which is originally placed in service at a qualified facility before the date of the enactment of the Bipartisan Budget Act of 2018, and

“(B) disposed of by the taxpayer in secure geological storage and not used by the taxpayer as described in paragraph (2)(B),

“(2) $10 per metric ton of qualified carbon oxide which is—

“(A) captured by the taxpayer using carbon capture equipment which is originally placed in service at a qualified facility before the date of the enactment of the Bipartisan Budget Act of 2018, and

“(B)

(i) used by the taxpayer as a tertiary injectant in a qualified enhanced oil or natural gas recovery project and disposed of by the taxpayer in secure geological storage, or

“(ii) utilized by the taxpayer in a manner described in subsection (f)(5),

“(3) the applicable dollar amount (as determined under subsection (b)(1)) per metric ton of qualified carbon oxide which is—

“(A) captured by the taxpayer using carbon capture equipment which is originally placed in service at a qualified facility on or after the date of the enactment of the Bipartisan Budget Act of 2018, during the 12-year period beginning on the date the equipment was originally placed in service, and

“(B) disposed of by the taxpayer in secure geological storage and not used by the taxpayer as described in paragraph (4)(B), and

“(4) the applicable dollar amount (as determined under subsection (b)(1)) per metric ton of qualified carbon oxide which is—

“(A) captured by the taxpayer using carbon capture equipment which is originally placed in service at a qualified facility on or after the date of the enactment of the Bipartisan Budget Act of 2018, during the 12-year period beginning on the date the equipment was originally placed in service, and

“(B)

(i) used by the taxpayer as a tertiary injectant in a qualified enhanced oil or natural gas recovery project and disposed of by the taxpayer in secure geological storage, or

“(ii) utilized by the taxpayer in a manner described in subsection (f)(5).

“(b) Applicable Dollar Amount; Additional Equipment; Election.—

“(1) Applicable dollar amount.—

“(A) In general.—The applicable dollar amount shall be an amount equal to—

“(i) for any taxable year beginning in a calendar year after 2016 and before 2027—

“(I) for purposes of paragraph (3) of subsection (a), the dollar amount established by linear interpolation between $22.66 and $50 for each calendar year during such period, and

“(II) for purposes of paragraph (4) of such subsection, the dollar amount established by linear interpolation between $12.83 and $35 for each calendar year during such period, and

“(ii) for any taxable year beginning in a calendar year after 2026—

“(I) for purposes of paragraph (3) of subsection (a), an amount equal to the product of $50 and the inflation adjustment factor for such calendar year determined under section 43(b)(3)(B) for such calendar year, determined by substituting ‘2025’ for ‘1990’, and

“(II) for purposes of paragraph (4) of such subsection, an amount equal to the product of $35 and the inflation adjustment factor for such calendar year determined under section 43(b)(3)(B) for such calendar year, determined by substituting ‘2025’ for ‘1990’.

“(B) Rounding.—The applicable dollar amount determined under subparagraph (A) shall be rounded to the nearest cent.

“(2) Installation of additional carbon capture equipment on existing qualified facility.—In the case of a qualified facility placed in service before the date of the enactment of the Bipartisan Budget Act of 2018, for which additional carbon capture equipment is placed in service on or after the date of the enactment of such Act, the amount of qualified carbon oxide which is captured by the taxpayer shall be equal to—

“(A) for purposes of paragraphs (1)(A) and (2)(A) of subsection (a), the lesser of—

“(i) the total amount of qualified carbon oxide captured at such facility for the taxable year, or

“(ii) the total amount of the carbon dioxide capture capacity of the carbon capture equipment in service at such facility on the day before the date of the enactment of the Bipartisan Budget Act of 2018, and

“(B) for purposes of paragraphs (3)(A) and (4)(A) of such subsection, an amount (not less than zero) equal to the excess of—

“(i) the amount described in clause (i) of subparagraph (A), over

“(ii) the amount described in clause (ii) of such subparagraph.

“(3) Election.—For purposes of determining the carbon oxide sequestration credit under this section, a taxpayer may elect to have the dollar amounts applicable under paragraph (1) or (2) of subsection (a) apply in lieu of the dollar amounts applicable under paragraph (3) or (4) of such subsection for each metric ton of qualified carbon oxide which is captured by the taxpayer using carbon capture equipment which is originally placed in service at a qualified facility on or after the date of the enactment of the Bipartisan Budget Act of 2018.

“(c) Qualified Carbon Oxide.—For purposes of this section—

“(1) In general.—The term ‘qualified carbon oxide’ means—

“(A) any carbon dioxide which—

“(i) is captured from an industrial source by carbon capture equipment which is originally placed in service before the date of the enactment of the Bipartisan Budget Act of 2018,

“(ii) would otherwise be released into the atmosphere as industrial emission of greenhouse gas or lead to such release, and

“(iii) is measured at the source of capture and verified at the point of disposal, injection, or utilization,

“(B) any carbon dioxide or other carbon oxide which—

“(i) is captured from an industrial source by carbon capture equipment which is originally placed in service on or after the date of the enactment of the Bipartisan Budget Act of 2018,

“(ii) would otherwise be released into the atmosphere as industrial emission of greenhouse gas or lead to such release, and

“(iii) is measured at the source of capture and verified at the point of disposal, injection, or utilization, or

“(C) in the case of a direct air capture facility, any carbon dioxide which—

“(i) is captured directly from the ambient air, and

“(ii) is measured at the source of capture and verified at the point of disposal, injection, or utilization.

“(2) Recycled carbon oxide.—The term ‘qualified carbon oxide’ includes the initial deposit of captured carbon oxide used as a tertiary injectant. Such term does not include carbon oxide that is recaptured, recycled, and re-injected as part of the enhanced oil and natural gas recovery process.

“(d) Qualified Facility.—For purposes of this section, the term ‘qualified facility’ means any industrial facility or direct air capture facility—

“(1) the construction of which begins before January 1, 2024, and—

“(A) construction of carbon capture equipment begins before such date, or

“(B) the original planning and design for such facility includes installation of carbon capture equipment, and

“(2) which captures—

“(A) in the case of a facility which emits not more than 500,000 metric tons of carbon oxide into the atmosphere during the taxable year, not less than 25,000 metric tons of qualified carbon oxide during the taxable year which is utilized in a manner described in subsection (f)(5),

“(B) in the case of an electricity generating facility which is not described in subparagraph (A), not less than 500,000 metric tons of qualified carbon oxide during the taxable year, or

“(C) in the case of a direct air capture facility or any facility not described in subparagraph (A) or (B), not less than 100,000 metric tons of qualified carbon oxide during the taxable year.

“(e) Definitions.—For purposes of this section—

“(1) Direct air capture facility.—

“(A) In general.—Subject to subparagraph (B), the term ‘direct air capture facility’ means any facility which uses carbon capture equipment to capture carbon dioxide directly from the ambient air.

“(B) Exception.—The term ‘direct air capture facility’ shall not include any facility which captures carbon dioxide—

“(i) which is deliberately released from naturally occurring subsurface springs, or

“(ii) using natural photosynthesis.

“(2) Qualified enhanced oil or natural gas recovery project.—The term ‘qualified enhanced oil or natural gas recovery project’ has the meaning given the term ‘qualified enhanced oil recovery project’ by section 43(c)(2), by substituting ‘crude oil or natural gas’ for ‘crude oil’ in subparagraph (A)(i) thereof.

“(3) Tertiary injectant.—The term ‘tertiary injectant’ has the same meaning as when used within section 193(b)(1).

“(f) Special Rules.—

“(1) Only qualified carbon oxide captured and disposed of or used within the united states taken into account.—The credit under this section shall apply only with respect to qualified carbon oxide the capture and disposal, use, or utilization of which is within—

“(A) the United States (within the meaning of section 638(1)), or

“(B) a possession of the United States (within the meaning of section 638(2)).

“(2) Secure geological storage.—The Secretary, in consultation with the Administrator of the Environmental Protection Agency, the Secretary of Energy, and the Secretary of the Interior, shall establish regulations for determining adequate security measures for the geological storage of qualified carbon oxide under subsection (a) such that the qualified carbon oxide does not escape into the atmosphere. Such term shall include storage at deep saline formations, oil and gas reservoirs, and unminable coal seams under such conditions as the Secretary may determine under such regulations.

“(3) Credit attributable to taxpayer.—

“(A) In general.—Except as provided in subparagraph (B) or in any regulations prescribed by the Secretary, any credit under this section shall be attributable to—

“(i) in the case of qualified carbon oxide captured using carbon capture equipment which is originally placed in service at a qualified facility before the date of the enactment of the Bipartisan Budget Act of 2018, the person that captures and physically or contractually ensures the disposal, utilization, or use as a tertiary injectant of such qualified carbon oxide, and

“(ii) in the case of qualified carbon oxide captured using carbon capture equipment which is originally placed in service at a qualified facility on or after the date of the enactment of the Bipartisan Budget Act of 2018, the person that owns the carbon capture equipment and physically or contractually ensures the capture and disposal, utilization, or use as a tertiary injectant of such qualified carbon oxide.

“(B) Election.—If the person described in subparagraph (A) makes an election under this subparagraph in such time and manner as the Secretary may prescribe by regulations, the credit under this section—

“(i) shall be allowable to the person that disposes of the qualified carbon oxide, utilizes the qualified carbon oxide, or uses the qualified carbon oxide as a tertiary injectant, and

“(ii) shall not be allowable to the person described in subparagraph (A).

“(4) Recapture.—The Secretary shall, by regulations, provide for recapturing the benefit of any credit allowable under subsection (a) with respect to any qualified carbon oxide which ceases to be captured, disposed of, or used as a tertiary injectant in a manner consistent with the requirements of this section.

“(5) Utilization of qualified carbon oxide.—

“(A) In general.—For purposes of this section, utilization of qualified carbon oxide means—

“(i) the fixation of such qualified carbon oxide through photosynthesis or chemosynthesis, such as through the growing of algae or bacteria,

“(ii) the chemical conversion of such qualified carbon oxide to a material or chemical compound in which such qualified carbon oxide is securely stored, or

“(iii) the use of such qualified carbon oxide for any other purpose for which a commercial market exists (with the exception of use as a tertiary injectant in a qualified enhanced oil or natural gas recovery project), as determined by the Secretary.

“(B) Measurement.—

“(i) In general.—For purposes of determining the amount of qualified carbon oxide utilized by the taxpayer under paragraph (2)(B)(ii) or (4)(B)(ii) of subsection (a), such amount shall be equal to the metric tons of qualified carbon oxide which the taxpayer demonstrates, based upon an analysis of lifecycle greenhouse gas emissions and subject to such requirements as the Secretary, in consultation with the Secretary of Energy and the Administrator of the Environmental Protection Agency, determines appropriate, were—

“(I) captured and permanently isolated from the atmosphere, or

“(II) displaced from being emitted into the atmosphere,

“(ii) Lifecycle greenhouse gas emissions.—For purposes of clause (i), the term ‘lifecycle greenhouse gas emissions’ has the same meaning given such term under subparagraph (H) of section 211(o)(1) of the Clean Air Act (42 U.S.C. 7545(o)(1)), as in effect on the date of the enactment of the Bipartisan Budget Act of 2018, except that ‘product’ shall be substituted for ‘fuel’ each place it appears in such subparagraph.

“(6) Election for applicable facilities.—

“(A) In general.—For purposes of this section, in the case of an applicable facility, for any taxable year in which such facility captures not less than 500,000 metric tons of qualified carbon oxide during the taxable year, the person described in paragraph (3)(A)(ii) may elect to have such facility, and any carbon capture equipment placed in service at such facility, deemed as having been placed in service on the date of the enactment of the Bipartisan Budget Act of 2018.

“(B) Applicable facility.—For purposes of this paragraph, the term ‘applicable facility’ means a qualified facility—

“(i) which was placed in service before the date of the enactment of the Bipartisan Budget Act of 2018, and

“(ii) for which no taxpayer claimed a credit under this section in regards to such facility for any taxable year ending before the date of the enactment of such Act.

“(7) Inflation adjustment.—In the case of any taxable year beginning in a calendar year after 2009, there shall be substituted for each dollar amount contained in paragraphs (1) and (2) of subsection (a) an amount equal to the product of—

“(A) such dollar amount, multiplied by

“(B) the inflation adjustment factor for such calendar year determined under section 43(b)(3)(B) for such calendar year, determined by substituting ‘2008’ for ‘1990’.

“(g) Application of Section for Certain Carbon Capture Equipment.—In the case of any carbon capture equipment placed in service before the date of the enactment of the Bipartisan Budget Act of 2018, the credit under this section shall apply with respect to qualified carbon oxide captured using such equipment before the end of the calendar year in which the Secretary, in consultation with the Administrator of the Environmental Protection Agency, certifies that, during the period beginning after October 3, 2008, a total of 75,000,000 metric tons of qualified carbon oxide have been taken into account in accordance with—

“(1) subsection (a) of this section, as in effect on the day before the date of the enactment of the Bipartisan Budget Act of 2018, and

“(2) paragraphs (1) and (2) of subsection (a) of this section.

“(h) Regulations.—The Secretary may prescribe such regulations and other guidance as may be necessary or appropriate to carry out this section, including regulations or other guidance to—

“(1) ensure proper allocation under subsection (a) for qualified carbon oxide captured by a taxpayer during the taxable year ending after the date of the enactment of the Bipartisan Budget Act of 2018, and

“(2) determine whether a facility satisfies the requirements under subsection (d)(1) during such taxable year.”