Title 42 — The Public Health and WelfareRelease 119-73

§16491 Energy production incentives

Title 42 › Chapter CHAPTER 149— - NATIONAL ENERGY POLICY AND PROGRAMS › Subchapter SUBCHAPTER XIII— - MISCELLANEOUS › § 16491

Last updated Apr 6, 2026|Official source

Summary

States may give businesses a credit against state taxes or fees, or other tax breaks. This can apply when electricity is made in the State from coal that was mined in the State, as long as the plant follows all federal and state laws and uses scrubbers or other clean-coal technology. If a State does this for any period starting after August 8, 2005, the action will be treated as a reasonable rule for interstate commerce and will not count as an undue burden or discrimination against interstate trade.

Full Legal Text

Title 42, §16491

The Public Health and Welfare — Source: USLM XML via OLRC

(a)A State may provide to any entity—

(1)a credit against any tax or fee owed to the State under a State law, or

(2)any other tax incentive,

(b)Subsection (a) shall apply with respect to the production in the State of electricity from coal mined in the State and used in a facility, if such production meets all applicable Federal and State laws and if such facility uses scrubbers or other forms of clean coal technology.

(c)Any action taken by a State in accordance with this section with respect to a tax or fee payable, or incentive applicable, for any period beginning after August 8, 2005, shall—

(1)be considered to be a reasonable regulation of commerce; and

(2)not be considered to impose an undue burden on interstate commerce or to otherwise impair, restrain, or discriminate, against interstate commerce.

Reference

Citations & Metadata

Citation

42 U.S.C. § 16491

Title 42 — The Public Health and Welfare

Last Updated

Apr 6, 2026

Release point: 119-73