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

119th Congress Introduced by Andy Barr and 2 co-sponsors

Extends the refined coal production tax credit window to end before Jan 1, 2033, allowing production in taxable years before 2033 to qualify.

Introduced in House

Bill at a glance

Bill: HR 7070

Session: 119th Congress, 2nd Session

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

Introduced: January 14, 2026

Primary sponsor: Mrs. Miller (WV)

Co-sponsors: Morgan Griffith, Andy Barr, Carol Miller

Committee referral: Ways and Means

Purpose and intent

HR 7070 seeks to extend the time frame during which refined coal production can qualify for the Section 45 refined coal production credit. The bill extends eligibility for the credit and aligns timing to allow more refined coal facilities to claim the credit for a longer planning and production window. It also clarifies certain definitional and administrative aspects to ensure refined coal facilities can qualify, including a reference to producing steel-industry fuel.

Key provisions and changes

Extension of the credit period:

Clause (i) of Section 45(e)(8)(A) is amended to change the start/credit window from the original 10-year period beginning when the facility was placed in service to a new deadline of before January 1, 2033.
Clause (ii) subclause (II) is amended to specify that the credit may be claimed for the taxable year if production occurs before January 1, 2033.

Conforming amendments to the statute:

Section 45(e)(8)(D) is amended to reorganize and adjust the subclauses (removing certain subclauses and redesignating others to reflect the new timing and structure).
Section 45(d)(8)(A) is amended to include language indicating that the facility modification may allow the production of steel industry fuel.

Effective date:

The amendments apply to refined coal produced and sold after December 31, 2025.

Who is affected

Refined coal producers and facilities that qualify for the Section 45 refined coal production credit.

Taxpayers claiming the refined coal credit, who must ensure production/sales occur within the newly extended window (before January 1, 2033).

Potentially downstream buyers and users of refined coal, insofar as tax incentives influence production decisions and plant operations.

Administratively, the IRS and industry tax professionals who apply the refined coal credit provisions will need to reference the updated criteria and timelines.

Procedural and timeline aspects

Effective date for amendments: Refined coal produced and sold after December 31, 2025.

New credit eligibility horizon: Through December 31, 2032 (i.e., eligible for production in taxable years before 2033).

Legislative path: Introduced January 14, 2026; referred to the House Ways and Means Committee for consideration.

Practical notes

The bill does not introduce a new credit amount or rate; it extends the period during which existing refined coal production credit can be claimed.

The changes are narrowly targeted to adjust timing and related conforming language, with a specific note that facilities may produce steel-industry fuel under modified provisions.