To amend the Internal Revenue Code of 1986 to extend the credit period for the production of refined coal, and for other purposes.
Summary
H.R. 7070 aims to amend the Internal Revenue Code of 1986 by extending the credit period for refined coal production. The bill specifically targets Section 45(e)(8)(A) of the code, modifying the timeline for credit eligibility. It also includes conforming amendments to Section 45(e)(8)(D) and Section 45(d)(8)(A).
Expected Effects
The primary effect of this bill is to extend the period during which refined coal production facilities can claim tax credits, potentially incentivizing continued or increased production. This extension applies to refined coal produced and sold after December 31, 2025, and before January 1, 2033. The changes could impact the energy sector and related industries.
Potential Benefits
- Potential job creation or retention in the coal industry.
- Possible reduction in the cost of steel production due to the amendment regarding steel industry fuel.
- Incentivizes continued investment in refined coal production technologies.
- Could provide a stable energy source, contributing to energy security.
- May support communities reliant on the coal industry.
Potential Disadvantages
- Continued reliance on coal, a fossil fuel, which may hinder the transition to cleaner energy sources.
- Potential negative environmental impacts associated with coal production and combustion.
- Taxpayer money supporting a potentially unsustainable industry.
- May disincentivize investment in renewable energy technologies.
- Possible health impacts on communities near coal production facilities.
Most Disadvantaged Areas:
Constitutional Alignment
The bill falls under the purview of Congress's power to lay and collect taxes, duties, imposts, and excises, as outlined in Article I, Section 8, Clause 1 of the Constitution. The extension of tax credits is a means of influencing economic activity, a power generally accepted as within the legislative branch's authority. However, the specific policy choices related to energy and environmental matters are subject to ongoing debate and scrutiny regarding their broader impact and alignment with the general welfare.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).