S 425 — Enhancing Energy Recovery Act

Bill Text

• Introduced Introduced in Senate Current html February 05, 2025

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The bill modifies the carbon oxide sequestration credit to ensure parity in different uses of qualified carbon oxide and adjusts associated dollar amounts.

• Section 45Q(a)

  subparagraph (B) → (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).

  This change restructures the definition of how qualified carbon oxide can be classified, ensuring different utilizations are recognized.

• Section 45Q(a)(1)

  paragraph (4)

  This change removes paragraph (4), impacting the structure of the tax credit for carbon oxide sequestration.

• Section 45Q(b)(1)(A)

  subparagraph (A) → (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'.

  This adjusts the timeline and amount for the applicable dollar amount for the carbon oxide sequestration credit.

• Section 45Q(b)(1)(B)

  shall be applied and all that follows through the period → shall be applied by substituting `$36' for `$17' each place it appears.

  This changes how the credit amount is adjusted for certain subcategories, increasing its value.

• Section 45Q(b)(2)(B)

  paragraphs (3)(A) and (4)(A) → paragraph (3)(A)

  This alters the reference to applicable paragraphs for certain computations, simplifying the regulation.

• Section 45Q(b)(3)

  the dollar amounts applicable under paragraph (3) or (4) → the dollar amount applicable under paragraph (3)

  This clarifies that only one dollar amount is applicable, removing confusion over multiple references.

• Section 45Q(f)(5)(B)(i)

  (4)(B)(ii) → (3)(B)(iii)

  This changes a reference to update it in line with adjusted paragraph structures.

• Section 45Q(f)(9)

  paragraphs (3) and (4) of subsection (a) → subsection (a)(3)

  This simplifies the reference to the subsection by removing unnecessary complexity.

• Section 45Q(h)(3)(A)(ii)

  paragraph (3)(A) or (4)(A) of subsection (a) → subsection (a)(3)(A)

  This streamlines a reference to only one specific part of subsection (a).

• Section 6417(d)(3)(C)(i)(II)(bb)

  paragraph (3)(A) or (4)(A) of section 45Q(a) → section 45Q(a)(3)(A)

  This updates the reference to ensure it is accurate according to the new paragraph structure.

Action History

1. February 05, 2025

   Introduced in Senate

2. February 05, 2025

   Read twice and referred to the Committee on Finance. (text: CR S668)

Sponsors

• John Barrasso · Primary
• James Lankford · Cosponsor
• Bill Cassidy · Cosponsor
• John Hoeven · Cosponsor
• James C. Justice · Cosponsor
• Tim Sheehy · Cosponsor
• Kevin Cramer · Cosponsor

Subjects