H.R. 7070: To amend the Internal Revenue Code of 1986 to extend the credit period for the production of refined coal, and for other purposes.

This bill proposes to make changes to the Internal Revenue Code regarding the production of refined coal. Here are the key points:

Extension of Credit Period

The bill aims to extend the time frame during which taxpayers can claim credits for the production of refined coal. Specifically, it modifies the existing code to allow credits to be claimed:

• Prior to January 1, 2033, rather than within the previously established 10-year period from when the facility was originally put into service.
• For refined coal produced and sold after December 31, 2025.

Amendments to Existing Provisions

The bill includes specific amendments to various clauses within Section 45(e)(8) of the Internal Revenue Code, which relate to the tax incentives for refined coal production:

• It removes certain limitations on the timing of when credits can be claimed.
• It updates references to ensure they align with the new effective date of the amendments.

Additionally, it adds language to indicate that the credits shall also apply to modifications that allow a facility to produce "steel industry fuel."

Effective Date

The changes made by this bill will take effect for refined coal that is produced and sold after December 31, 2025.

Overall Impact

The overarching goal of the bill is to provide a longer time frame for producers of refined coal to receive tax credits, potentially encouraging more production in the sector. This aligns with efforts to support coal production and related facilities in the United States.

Relevant Companies

• ARCH - Arch Resources Inc. may benefit due to its involvement in coal mining and production, allowing it to take advantage of the extended tax credits.
• BTU - Peabody Energy Corporation could be impacted as a major coal producer, providing refined coal and therefore eligible for the credits extended by the bill.
• CEIX - Contura Energy, Inc. might see benefits from the extended credit period for its coal production activities.