Sponsors
The bill extends a tax credit that supports coal producers, utilities, and related jobs and planning through 2032, at the cost of higher federal spending and potential delays to the clean energy transition while favoring coal industry actors over other energy producers.
Refined coal producers and utilities that purchase refined coal can claim the tax credit through 2032, increasing revenue for producers and lowering fuel costs for buyers.
Energy workers at coal refining facilities retain jobs because extending the credit supports continued demand for refined coal through 2032.
Utilities and refined coal project developers gain regulatory certainty for planning and investment by having a clear statutory cut-off date for the credit.
Taxpayers: extending the refined coal tax credit increases federal tax expenditures, which could raise the deficit or crowd out other spending priorities.
General public and future generations: prolonging subsidies for refined coal may discourage investment in lower-emission energy sources and slow the clean energy transition, with negative environmental and health implications.
Other energy producers and small businesses: the change preferentially benefits coal/refining firms and utilities that use refined coal, creating unequal support compared with other energy sectors.
Based on analysis of 2 sections of legislative text.
Extends the federal refined coal production tax credit so it applies to refined coal produced/sold after Dec 31, 2025 and available through Dec 31, 2032 (before Jan 1, 2033).
Extends the federal tax credit for refined coal production by setting a single cutoff date so credits remain available for refined coal produced and sold after December 31, 2025, and through the end of 2032 (before January 1, 2033). The bill makes technical changes to the Internal Revenue Code to implement that uniform expiration date and to conform related provisions.
Introduced March 17, 2026 by James Conley Justice · Last progress March 17, 2026