Enhancing Energy Recovery Act

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 425 Introduced in Senate (IS)]

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119th CONGRESS
  1st Session
                                 S. 425

 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.


_______________________________________________________________________


                   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.

    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 `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.
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