Sponsors (3)
Extending the refined coal production tax credit through 2032 supports coal-industry jobs and investment by preserving revenue and giving planning certainty, but it increases federal spending and risks slowing the shift to cleaner energy.
Refined coal producers, and the energy workers and small businesses tied to them, can continue to claim the production tax credit for coal sold through 2032, increasing expected near-term revenue for those facilities.
Refined coal producers and investors gain a clear calendar cutoff (Jan 1, 2033), providing regulatory certainty that aids investment and planning over the next several years.
The extension increases federal tax expenditures, which raises costs to taxpayers and could add to the budget deficit or crowd out other federal spending priorities.
The continued tax support for refined coal may discourage investment in cleaner energy alternatives and slow broader decarbonization efforts, affecting the general public and long-term climate goals.
Based on analysis of 2 sections of legislative text.
Extends the eligible production period for the refined coal production tax credit so it covers refined coal produced and sold before January 1, 2033, with effect for production/sales after December 31, 2025.
Official 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 by Carol Devine Miller · Last progress January 14, 2026
Extends the federal tax credit period for refined coal production so the credit applies to refined coal produced and sold before January 1, 2033, and changes the previous facility‑specific 10‑year window. The amendment applies to refined coal produced and sold after December 31, 2025, and includes conforming edits and renumbering in the Internal Revenue Code provisions governing the refined coal credit. The bill does not create new spending programs; it modifies the timing and statutory language of an existing production tax credit to lengthen the period during which production is eligible for the credit.