H.R. 8108 — End Polluter Welfare for Enhanced Oil Recovery Act of 2026

This section eliminates eligibility under the Section 45Q tax credit for carbon oxide sequestration for carbon oxide used as a tertiary injectant (i.e., in enhanced oil recovery) by qualified facilities the construction of which begins after the date of enactment. The change applies to taxable years beginning after enactment.

This section terminates the enhanced oil recovery tax credit under section 43 of the Internal Revenue Code. (As background, the credit equals 15% of qualified costs for enhanced oil recovery projects—i.e., tertiary recovery methods such as CO2 injection to extract additional oil from reservoirs—claimed by oil producers.) The termination applies to taxable years beginning after enactment, with conforming amendments striking or preserving prior references to section 43 in sections 38(b), 45I, 45K, 45Q, 196(c), and 6501(m).