Extend Refined Coal Tax Credit

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

Summary#

This bill changes a part of the tax code that governs the production tax credit for refined coal. It replaces a rule that limited the credit to the 10-year period after a facility was first placed in service with a fixed date, allowing credit claims for refined coal produced and sold before January 1, 2033. The bill also updates related internal cross-references and adds language about modifications that allow a facility to produce steel industry fuel. The changes apply to refined coal produced and sold after December 31, 2025. The bill was introduced in the House on January 14, 2026, and referred to the House Committee on Ways and Means.

What it means for you#

  • Producers of refined coal may be able to claim the production tax credit for coal produced and sold before January 1, 2033, instead of being limited to a 10-year window tied to when a facility first began operating.
  • Facilities that are modified to allow production of steel industry fuel are specifically addressed by the bill.
  • If you are not involved in refined coal production or facility modification, the bill does not directly change anything for you.

Expenses#

No publicly available information on estimated budgetary effects, costs, or revenue changes is included in the bill text or metadata.

Proponents' View#

No publicly available information.

Opponents' View#

No publicly available information.