H.R. 1946

119 HR 1946 IH: 45Q Repeal Act of 2025
 U.S. House of Representatives
 2025-03-06
 text/xml
 EN
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 I  119th CONGRESS  1st Session  H. R. 1946  IN THE HOUSE OF REPRESENTATIVES   March 6, 2025   Mr. Perry  (for himself and  Mr. Khanna ) introduced the following bill; which was referred to the  Committee on Ways and Means    A BILL
To amend the Internal Revenue Code of 1986 to repeal the carbon oxide sequestration credit.
1.
Short title
This Act may be cited as the   45Q Repeal Act of 2025  .
2.
Repeal of carbon oxide sequestration credit
(a)
In general
Subpart D of part IV of subchapter A of  chapter 1  of the Internal Revenue Code of 1986 is amended by repealing section 45Q and by striking the item relating to such section from the table of sections for such subpart.
(b)
Conforming amendments
(1)
Section 38(b) is amended by striking paragraph (29).
(2)
Section 45V(d) is amended by striking paragraph (2).
(3)
Section 48(a)(15) is amended—
(A)
in subparagraph (B), by striking  or section 45Q , and
(B)
in subparagraph (C)(ii)(I), by striking  or 45Q .
(4)
Section 45Y(b)(1)(D) is amended by striking  45Q, .
(5)
Section 45Y(b)(2)(D) is amended to read as follows:
(D)
Carbon capture and sequestration equipment
(i)
In general
For purposes of this subsection, the amount of greenhouse gases emitted into the atmosphere by a facility in the production of electricity shall not include any qualified carbon dioxide that is captured by the taxpayer and—
(I)
pursuant to any regulations established under clause (ii), disposed of by the taxpayer in secure geological storage, or
(II)
utilized by the taxpayer in a manner described in paragraph (5) of such section.
(ii)
Regulations
(I)
In general
The Secretary, in consultation with the Administrator of the Environmental Protection Agency, the Secretary of Energy, and the Secretary of the Interior, shall establish regulations for determining adequate security measures for the geological storage of qualified carbon oxide under clause (i) such that the qualified carbon oxide does not escape into the atmosphere. Such term shall include storage at deep saline formations, oil and gas reservoirs, and unminable coal seams under such conditions as the Secretary may determine under such regulations.
(II)
Qualified carbon oxide
For purposes of this clause, the term  qualified carbon oxide  has the meaning given such term in section 45Q(c) as such section was in effect on the day before the date of the enactment of the  45Q Repeal Act of 2025 .
 .
(6)
Section 45Z(d)(4)(B) is amended by striking clause (iii).
(7)
Section 48C(f) is amended by striking  45Q, .
(8)
Section 48E(b)(3)(C) is amended by striking clause (iii).
(9)
Section 142(o)(1)(B) is amended by inserting  , as such section was in effect on the day before the date of the enactment of the  45Q Repeal Act of 2025   after  45Q(e)(3) .
(10)
Section 6417 is amended—
(A)
in subsection (b) by striking paragraph (3), and
(B)
in subsection (d)—
(i)
in paragraph (1)(C), by inserting  , as such section was in effect on the day before the date of the enactment of the  45Q Repeal Act of 2025   after  45Q(d) , and
(ii)
in paragraph (3)(C)(i)(II)(bb), by striking  period described in paragraph (3)(A) or (4)(A) of section 45Q(a) with respect to such equipment  and inserting  12-year period beginning on the date the equipment was originally placed in service .
(11)
Section 6418(f)(1)(A) is amended by striking clause (iii).
(c)
Effective date
The amendments made by this section shall apply to taxable years beginning after December 31, 2025.