Referred to the House Committee on Ways and Means.
This bill amends Internal Revenue Code section 45Q (the carbon oxide sequestration tax credit) to change which uses of captured carbon qualify, to harmonize treatment across different utilizations, and to set the statutory dollar amount for the credit to $17 for tax years beginning after 2024 and before 2027, with inflation indexing thereafter. It replaces certain paragraph references, strikes a prior paragraph, and applies the changes to taxable years beginning after December 31, 2024.
Progressives emphasize reduced climate incentives and EOR subsidies
Relative to its intended legislative type, this bill is a direct substantive amendment to the Internal Revenue Code (section 45Q) intended to alter eligibility categories and the applicable dollar amounts for the carbon oxide sequestration credit and includes a conforming housekeeping amendment.
This bill amends Internal Revenue Code section 45Q (the carbon oxide sequestration tax credit) to change which uses of captured carbon qualify, to harmonize treatment across different utilizations, and to set the statutory dollar amount for the credit to $17 for tax years beginning after 2024 and before 2027, with inflation indexing thereafter.
It replaces certain paragraph references, strikes a prior paragraph, and applies the changes to taxable years beginning after December 31, 2024.
Technocratic and narrow but touches contentious carbon/EOR incentives; reasonable chance if folded into a larger tax/energy package, lower as standalone.
Relative to its intended legislative type, this bill is a direct substantive amendment to the Internal Revenue Code (section 45Q) intended to alter eligibility categories and the applicable dollar amounts for the carbon oxide sequestration credit and includes a conforming housekeeping amendment. It sets an effective date and specifies which statutory provisions are changed.
Progressives emphasize reduced climate incentives and EOR subsidies
These are examples from the analysis, not a ranked list of the most-affected groups.
Progressives emphasize reduced climate incentives and EOR subsidies
Likely critical.
The bill reduces statutory credit dollar amounts and extends parity to different uses, including tertiary injectant/EOR, which raises climate policy concerns.
Progressives would worry it weakens incentives for permanent carbon removal and could subsidize fossil fuel production.
Mixed/conditional.
The bill simplifies statutory language and sets a lower, indexed credit that reduces near-term fiscal exposure while maintaining a tax incentive for carbon use/storage.
Centrists will weigh budgetary savings and regulatory clarity against possible reduced carbon removal deployment and EOR subsidies.
Generally favorable.
The bill lowers and caps the statutory credit amount, simplifies tax-code language, and treats different carbon uses equally.
Conservatives will likely view this as fiscal restraint and as providing predictable treatment for energy industry practices.
Reached or meaningfully advanced
Reached or meaningfully advanced
Still ahead
Still ahead
Still ahead
Technocratic and narrow but touches contentious carbon/EOR incentives; reasonable chance if folded into a larger tax/energy package, lower as standalone.
The bill has not accumulated any surfaced votes yet.
Progressives emphasize reduced climate incentives and EOR subsidies
Technocratic and narrow but touches contentious carbon/EOR incentives; reasonable chance if folded into a larger tax/energy package, lower…
Relative to its intended legislative type, this bill is a direct substantive amendment to the Internal Revenue Code (section 45Q) intended to alter eligibility categories and the applicable dollar amounts for the carbon…
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