Sponsors (2)
The bill extends financial support and planning certainty for refined coal producers through 2032, trading off higher federal spending and a potential slowdown in the transition to cleaner energy.
Refined coal producers, and the energy workers and small businesses tied to those facilities, can claim the production tax credit for refined coal sold through 2032, increasing near-term revenue and supporting jobs.
Refined coal producers and investors gain regulatory certainty from a clear calendar cutoff (Jan 1, 2033), which aids multi-year investment and planning decisions.
Taxpayers face larger federal tax expenditures from extending the production tax credit, which could increase the budget deficit or crowd out other federal spending priorities.
The general public and future generations may see slower progress on decarbonization because continued tax support for refined coal can discourage investment in cleaner energy alternatives.
Based on analysis of 2 sections of legislative text.
Extends the federal refined coal production tax credit to apply to refined coal produced and sold before Jan 1, 2033, for production/sales after Dec 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 and reshapes the federal tax credit rules for refined coal production so that refined coal produced and sold before January 1, 2033 is eligible for the credit, with the change applying to refined coal produced and sold after December 31, 2025. It also makes technical conforming edits and renumbering in related Internal Revenue Code provisions. The change replaces a prior facility-specific 10-year window approach with a calendar-based covered period through the end of 2032, preserving the tax incentive for eligible refined coal production for the newly specified timeframe.