H.R. 3542

116TH CONGRESS
1ST SESSION

H.R. 3542

To amend the Internal Revenue Code of 1986 to permanently
extend the Indian coal production tax credit, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

JUNE 27, 2019

Mr. GIANFORTE introduced the following bill; which was
referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to permanently extend the Indian coal production tax credit, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. PERMANENT EXTENSION OF INDIAN COAL PRODUCTION TAX CREDIT.

(a) IN GENERAL. — Section 45(e)(10) of the Internal Revenue Code of 1986 is amended —

(1) in subparagraph (A), by striking "the applicable dollar amount per ton of Indian coal" and all that follows and inserting the following: "$4.00 per ton of Indian coal —

"(i) produced by the taxpayer at an Indian coal production facility, and

"(ii) sold (either directly by the taxpayer or after sale or transfer to one or more related persons) to an unrelated person during such taxable year.", and

(2) by striking subparagraph (B) and inserting the following:

"(B) INFLATION ADJUSTMENT. — In the case of any calendar year after 2018, the dollar amount in subparagraph (A) shall be equal to the product of such dollar amount and the inflation adjustment factor determined under paragraph (2)(B) for the calendar year, except that such paragraph shall be applied by substituting '2017' for '1992'.".

(b) DEFINITION OF INDIAN COAL. — Subparagraph (A) of section 45(c)(9) of the Internal Revenue Code of 1986 is amended to read as follows:

"(A) IN GENERAL. — The term 'Indian coal' means coal which is produced from coal reserves which are —

"(i) owned or controlled by an Indian tribe,

"(ii) owned or controlled by an enrolled member of an Indian tribe, or

"(iii) held in trust by the United States for the benefit of an Indian tribe or its members.".

(c) EFFECTIVE DATE. — The amendments made by this section shall apply to coal produced and sold after January 1, 2018.