S. 425

119 S425 IS: Enhancing Energy Recovery Act
 U.S. Senate
 2025-02-05
 text/xml
 EN
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 II  119th CONGRESS  1st Session  S. 425  IN THE SENATE OF THE UNITED STATES   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    A BILL
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.
1.
Short title
This Act may be cited as the   Enhancing Energy Recovery Act  .
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  2025  for  1990 .
 , 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.