42 USC § 16491 - Energy production incentives

---
identifier: "/us/usc/t42/s16491"
source: "usc"
legal_status: "official_prima_facie"
title: "42 USC § 16491 - Energy production incentives"
title_number: 42
title_name: "THE PUBLIC HEALTH AND WELFARE"
section_number: "16491"
section_name: "Energy production incentives"
chapter_number: 149
chapter_name: "NATIONAL ENERGY POLICY AND PROGRAMS"
subchapter_number: "XIII"
subchapter_name: "MISCELLANEOUS"
positive_law: false
currency: "119-84"
last_updated: "2026-04-17"
format_version: "1.1.0"
generator: "[email protected]"
source_credit: "(Pub. L. 109–58, title XIV, § 1402, Aug. 8, 2005, 119 Stat. 1061.)"
---


# § 16491. Energy production incentives

**(a)** **In general** A State may provide to any entity—

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.

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

**(2)** any other tax 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.

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**Source Credit**: (Pub. L. 109–58, title XIV, § 1402, Aug. 8, 2005, 119 Stat. 1061.)