To amend the Internal Revenue Code of 1986 to extend the credit period for the production of refined coal, and for other purposes.
- Bill Number
- H.R. 7070
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2026-01-14: Referred to the House Committee on Ways and Means.
- Last Updated
- 2026-04-28T08:06:49Z
AI-Generated Summary
Purpose
This bill (H.R. 7070) aims to extend the time period during which producers of refined coal—coal that has been processed to reduce emissions when burned—can claim a federal tax credit under the Internal Revenue Code. The goal is to incentivize ongoing production of this cleaner form of coal beyond the current expiration date.
Key Provisions
- Extension of Credit Period: Amends Section 45(e)(8)(A) of the Internal Revenue Code (IRC) to allow the tax credit for refined coal production and sales to apply to fuel produced and sold before January 1, 2033, replacing the previous limit of a 10-year period starting from when the production facility was first placed in service.
- Conforming Amendments:
- Updates related subsections in Section 45(e)(8)(D) by removing outdated clauses, redesignating others, and eliminating a prior clause on credit termination.
- Modifies Section 45(d)(8)(A) to clarify that facility modifications qualifying for the credit must enable production of "steel industry fuel" (a type of refined coal used in steelmaking).
- Effective Date: The changes apply to refined coal produced and sold after December 31, 2025.
Significant Changes to Existing Law
- The original IRC Section 45 provided a tax credit (up to $6.68 per ton of refined coal produced and sold) only for the first 10 years of a facility's operation. This bill removes that fixed 10-year cap and ties eligibility to a calendar deadline (end of 2032), potentially allowing older facilities to continue claiming credits.
- It streamlines language in the code by deleting redundant or expired provisions, making the rules clearer for ongoing use.
- Adds specificity to what counts as a qualifying facility modification, emphasizing steel industry applications.
Potential Impacts
- On Government Agencies: The Internal Revenue Service (IRS) will need to process tax claims under the extended timeline, potentially increasing administrative workload but also maintaining tax incentives that support domestic energy production. This could affect federal tax revenue by extending credit payouts estimated in the billions over time.
- On Citizens and Businesses: Encourages investment in refined coal facilities, benefiting workers and companies in coal-dependent regions by prolonging financial incentives. It may lower energy costs for industries like steelmaking but could indirectly influence electricity prices for consumers if refined coal use expands.
- On International Relations: Minimal direct impact, though supporting U.S. coal production could strengthen domestic energy independence, potentially affecting trade in energy exports or negotiations on global emissions standards.
Main Stakeholders Affected
- Coal Producers and Energy Companies: Primary beneficiaries, as they can claim credits longer, reducing financial risks for facilities producing refined coal.
- Steel Industry: Gains from provisions targeting "steel industry fuel," which could lower production costs and support manufacturing jobs.
- Taxpayers and Government: Broader public through potential shifts in tax revenue; environmental groups may monitor for effects on pollution reduction goals.
- Facility Owners and Investors: Older facilities (beyond 10 years) become eligible again, attracting reinvestment.
Notable Legal, Constitutional, or Political Implications
- Legal: This is a straightforward tax code amendment under Congress's authority to regulate taxation (Article I, Section 8 of the U.S. Constitution). It aligns with existing clean energy incentives in Section 45 but extends a fossil fuel-related credit, which could face challenges if tied to broader environmental lawsuits.
- Constitutional: No apparent conflicts; it exercises fiscal policy powers without infringing on states' rights or individual liberties.
- Political: Reinforces support for traditional energy sectors amid debates on transitioning to renewables, potentially influencing energy policy discussions in Congress. As a targeted extension, it may spark partisan divides on climate priorities but remains neutral in promoting emission-reducing coal technologies.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Miller, Carol D. [R-WV-1]
Cosponsors (1)
Rep. Griffith, H. Morgan [R-VA-9]
Recent Actions
- 2026-01-14: Referred to the House Committee on Ways and Means.
- 2026-01-14: Introduced in House
- 2026-01-14: Introduced in House
Bill Versions
- To amend the Internal Revenue Code of 1986 to extend the credit period for the production of refined coal, and for other purposes. — issued 2026-01-14 — PDF (2 pages)