Title 42, The Public Health and WelfareRelease 119-110

§16491 Energy Production Incentives

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

Last updated Sep 22, 2026|Official source

Summary

A State may give any company tax credits or other tax breaks for electricity made in that State from coal that was mined in that State. The State decides the amount, using a formula it sets. The power plant must follow all federal and State laws and must use scrubbers or other clean coal technology. If a State gives these incentives for any time starting after August 8, 2005, those actions will be treated as reasonable regulation of commerce and not as an unfair or illegal burden on trade between states.

Full Legal Text

Title 42, §16491

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

(a)In general

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,

determined by the State to be appropriate, in the amount calculated under and in accordance with a formula determined by the State, for production described in subsection (b) in the State by the entity that receives such credit or such incentive.

(b)Eligible entities

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)Effect on interstate commerce

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

Sep 22, 2026

Release point: 119-110