February 5, 2025
Mr. Barrasso (for himself, Mr. Lankford, Mr. Cassidy, Mr. Hoeven, Mr. Justice, and Mr. Sheehy introduced the following bill; which was read twice and referred to the Committee on Finance
To amend the Internal Revenue Code of 1986 to modify the carbon oxide sequestration credit to ensure parity for different uses and utilizations of qualified carbon oxide.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
Section 1. Short title
This Act may be cited as the Enhancing Energy Recovery Act
.
Sec. 2. Parity for different uses and utilizations of qualified carbon oxide
(a) In general
Section 45Q of the Internal Revenue Code of 1986 is amended—
(1)
in subsection (a)—
(A)
in paragraph (2)(B)(ii), by adding and
at the end,
(B)
in paragraph (3), by striking subparagraph (B) and inserting the following:
(B)
(i)
disposed of by the taxpayer in secure geological storage and not used by the taxpayer as described in clause (ii) or (iii),
(ii)
used by the taxpayer as a tertiary injectant in a qualified enhanced oil or natural gas recovery project and disposed of by the taxpayer in secure geological storage, or
(iii)
utilized by the taxpayer in a manner described in subsection (f)(5)., and
(C)
by striking paragraph (4), and
(2)
in subsection (b)—
(A)
in paragraph (1)—
(i)
by striking subparagraph (A) and inserting the following:
(A)
Except as provided in subparagraph (B) or (C), the applicable dollar amount shall be an amount equal to—
(i)
for any taxable year beginning in a calendar year after 2024 and before 2027, $17, and
(ii)
for any taxable year beginning in a calendar year after 2026, an amount equal to the product of $17 and the inflation adjustment factor for such calendar year determined under section 43(b)(3)(B) for such calendar year, determined by substituting
2025for1990., and
(ii)
in subparagraph (B), by striking shall be applied
and all that follows through the period and inserting shall be applied by substituting
, $36
for $17
each place it appears.
(B)
in paragraph (2)(B), by striking paragraphs (3)(A) and (4)(A)
and inserting paragraph (3)(A)
, and
(C)
in paragraph (3), by striking the dollar amounts applicable under paragraph (3) or (4)
and inserting the dollar amount applicable under paragraph (3)
,
(3)
in subsection (f)—
(A)
in paragraph (5)(B)(i), by striking (4)(B)(ii)
and inserting (3)(B)(iii)
, and
(B)
in paragraph (9), by striking paragraphs (3) and (4) of subsection (a)
and inserting subsection (a)(3)
, and
(4)
in subsection (h)(3)(A)(ii), by striking paragraph (3)(A) or (4)(A) of subsection (a)
and inserting subsection (a)(3)(A)
.
(b) Conforming amendment
Section 6417(d)(3)(C)(i)(II)(bb) of the Internal Revenue Code of 1986 is amended by striking paragraph (3)(A) or (4)(A) of section 45Q(a)
and inserting section 45Q(a)(3)(A)
.
(c) Effective date
The amendments made by this section shall apply to taxable years beginning after December 31, 2024.