HR 1003
Enhancing Energy Recovery Act
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Bill overview
This bill, the Enhancing Energy Recovery Act, modifies the carbon oxide sequestration credit under the Internal Revenue Code. It aims to create parity in the credit for different ways businesses can utilize captured carbon oxide, including using it in enhanced oil and gas recovery or as a tertiary injectant. The bill also adjusts the credit amounts based on inflation, increasing them over time.
Key provisions
- Expands the carbon oxide sequestration credit to include uses like enhanced oil and natural gas recovery.
- Creates parity between different methods of utilizing captured carbon oxide.
- Increases the credit amount annually, with a base amount of $17 per metric ton of carbon oxide stored in secure geological storage.
- Adjusts the credit amount for inflation, using an inflation adjustment factor.
- Modifies the definition of ‘qualified carbon oxide utilization’ to encompass specific methods.
Who is affected
- Businesses involved in carbon capture and sequestration
- Oil and gas companies
- Energy producers
- Taxpayers
Notable changes
- Increases the annual credit amount and adjusts it for inflation.
- Allows for the use of captured carbon oxide in enhanced oil and natural gas recovery projects.
- Clarifies the requirements for qualifying carbon oxide sequestration.
Sponsors
Official sponsors from legislative records.
Primary sponsor
Cosponsors
Randy K. Sr. Weber
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119th CONGRESS — 1st Session
H. R. 1003
IN THE HOUSE OF REPRESENTATIVES
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.
This Act may be cited as the Enhancing Energy Recovery Act
.
Section 45Q of the Internal Revenue Code of 1986 is amended—
in subsection (a)—
in paragraph (2)(B)(ii), by adding and
at the end,
in paragraph (3), by striking subparagraph (B) and inserting the following:
disposed of by the taxpayer in secure geological storage and not used by the taxpayer as described in clause (ii) or (iii),
by striking paragraph (4),
in subsection (b)—
in paragraph (1)—
by striking subparagraph (A) and inserting the following:
Except as provided in subparagraph (B) or (C), the applicable dollar amount shall be an amount equal to—
2025for
1990.
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.
in paragraph (2)(B), by striking paragraphs (3)(A) and (4)(A)
and inserting paragraph (3)(A)
, and
in paragraph (3), by striking the dollar amounts applicable under paragraph (3) or (4)
and inserting the dollar amount applicable under paragraph (3)
,
in subsection (f)—
(4)(B)(ii)and inserting
(3)(B)(iii), and
in paragraph (9), by striking paragraphs (3) and (4) of subsection (a)
and inserting subsection (a)(3)
, and
in subsection (h)(3)(A)(ii), by striking paragraph (3)(A) or (4)(A) of subsection (a)
and inserting subsection (a)(3)(A)
.
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)
.
The amendments made by this section shall apply to taxable years beginning after December 31, 2024.