The refined coal tax credit, which incentivizes power plants to pre-treat or refine coal to decrease emissions, would be extended for another decade under a bill sponsored on March 16 by U.S. Sen. John Hoeven (R-ND).
“The refined coal tax credit is a win-win for our nation, as it both supports the continued use of our abundant coal resources, a critical source of baseload power for the grid, while also improving environmental stewardship,” said Sen. Hoeven, who serves on the U.S. Senate Energy and Natural Resources Committee.
The measure “would give a new opportunity for facilities to qualify for the tax credit,” the senator added. “That means greater adoption of this important technology and further emissions reductions.”
Sen. Hoeven introduced S. 759 with original cosponsor U.S. Sen. Kevin Cramer (R-ND), which also would establish a three-year window, from Dec. 31, 2020 through Jan. 1, 2024, to allow new coal facilities utilizing refined coal to qualify for the credit.
According to Sen. Hoeven’s office, such action would benefit the coal-generating power plants in North Dakota that use refined coal and support the work of the University of North Dakota’s Energy and Environmental Research Center, which verifies that refined coal meets the standards required to claim the credit.
All facilities currently eligible to claim the refined coal tax credit must have been placed in service before Dec. 31, 2011.