A bill to amend the Internal Revenue Code of 1986 to extend the credit period for the production of refined coal, and for other purposes.

Key Points

• This bill would extend a federal tax credit for companies that produce refined coal. Currently, these companies can only claim the credit for 10 years after they start operating. This change would allow them to keep claiming the credit until the start of 2033.
• The policy mainly helps coal processing plants and the power plants that use refined coal. Refined coal is treated to reduce certain pollutants like mercury and sulfur. By extending the credit, the government makes it cheaper for these plants to keep running.
• Supporters argue that refined coal is a cleaner way to use a traditional energy source while keeping energy costs stable. Critics often argue that these tax credits are expensive for the government and that the environmental benefits are not as large as those from renewable energy.
• If passed, the new rules would apply to coal produced and sold after the end of 2025. While the bill does not list a specific dollar amount, extending tax credits means the government will collect less tax money from the energy industry over the next several years.

Impact Analysis

Govbase has not yet run an impact analysis on this legislation.