How S 425 changes current law

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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.