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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 3778 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
2d Session
S. 3778
To amend the Internal Revenue Code of 1986 to expand the carbon oxide
sequestration credit to include solid or liquid carbon capture
facilities.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
February 4, 2026
Mr. Sheehy (for himself and Ms. Cantwell) 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 expand the carbon oxide
sequestration credit to include solid or liquid carbon capture
facilities.
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 ``Carbon Resource Innovation Act''.
SEC. 2. EXPANSION OF CARBON OXIDE SEQUESTRATION CREDIT TO INCLUDE SOLID
OR LIQUID CARBON CAPTURE FACILITIES.
(a) In General.--Section 45Q of the Internal Revenue Code of 1986
is amended--
(1) in subsection (c)(1)--
(A) in subparagraph (B)(iii), by striking ``or'' at
the end,
(B) in subparagraph (C)(ii), by striking the period
at the end and inserting ``, or'', and
(C) by adding at the end the following new
subparagraph:
``(D) in the case of a solid or liquid carbon
capture facility, any carbon which--
``(i) is captured in liquid or solid form
by carbon capture equipment,
``(ii) if not captured, would be expected
to--
``(I) be released into the
atmosphere by natural processes as an
emission of greenhouse gas, or
``(II) lead to such release through
a comparison system (as such term is
used in Treasury Regulation section
1.45Q-4(c)(2)), and
``(iii) is measured at the source of
capture and verified at the point of disposal,
injection, or utilization.'',
(2) in subsection (d)--
(A) in the matter preceding paragraph (1), by
striking ``or direct air capture facility'' and
inserting ``, direct air capture facility, or solid or
liquid carbon capture facility'', and
(B) in paragraph (2)--
(i) in subparagraph (B)(ii), by striking
``or'' at the end,
(ii) by redesignating subparagraph (C) as
subparagraph (D), and
(iii) by inserting after subparagraph (B)
the following new subparagraph:
``(C) in the case of a solid or liquid carbon
capture facility, captures not less than 1,000 metric
tons of qualified carbon oxide during the taxable year,
or'',
(3) in subsection (e)--
(A) by redesignating paragraph (5) as paragraph
(6), and
(B) by inserting after paragraph (4) the following
new paragraph:
``(5) Solid or liquid carbon capture facility.--
``(A) In general.--The term `solid or liquid carbon
capture facility' means any facility which uses carbon
capture equipment to capture carbon in solid or liquid
form that would otherwise be released into the
atmosphere as a carbon oxide, including a facility
which results in a net reduction of carbon when
compared to a comparison system (as described in
Treasury Regulation section 1.45Q-4(c)(2)).
``(B) Other terms.--With respect to a facility
described in subparagraph (A)--
``(i) the term `capture' means, with
respect to carbon, the process which enables
disposal, injection, or utilization of such
carbon, and
``(ii) the term `carbon capture equipment'
means any equipment used at such facility.'',
and
(4) in subsection (f)--
(A) in paragraph (2), by inserting ``, and in the
case of solid or liquid carbon capture facilities,
shall also include underground storage chambers under
such conditions that the carbon does not escape into
the atmosphere'' after ``under such regulations'', and
(B) by adding at the end the following new
paragraph:
``(11) Carbon captured by solid or liquid carbon capture
facility.--For purposes of this section, the amount of carbon
which is captured by the taxpayer at a solid or liquid carbon
capture facility shall be equal to the carbon dioxide
equivalent of the metric tons of carbon which are measured at
the source of capture and verified at the point of disposal,
injection, or utilization.''.
(b) Effective Date.--The amendments made by this section shall
apply to carbon captured after the date of enactment of this Act.
<all>
Introduced in Senate
Read twice and referred to the Committee on Finance.
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