“To amend the Internal Revenue Code of 1986 to repeal the carbon oxide sequestration credit.”
No CRS summary available for this bill.
This section repeals the carbon oxide sequestration tax credit under section 45Q of the Internal Revenue Code (i.e., provides per-ton credits to taxpayers for capturing qualified carbon oxide from industrial or direct air capture sources and securely storing it or utilizing it in specified manners, such as enhanced oil recovery), effective for taxable years beginning after December 31, 2025. It also makes conforming amendments to over a dozen other clean energy tax provisions (e.g., §§38, 45V, 45Y, 45Z, 48, 48C, 48E, 142, 6417, and 6418), including striking 45Q from lists of general business and transferable credits, eliminating related direct pay elections, and preserving pre-repeal definitions of terms such as "qualified carbon oxide" and secure geological storage for use in remaining credits.