S. 4222 — End Polluter Welfare for Enhanced Oil Recovery Act of 2026

This section eliminates eligibility under the carbon oxide sequestration credit (Section 45Q) for use of carbon oxide as a tertiary injectant (i.e., for enhanced oil recovery) at qualified facilities the construction of which begins after enactment of the End Polluter Welfare for Enhanced Oil Recovery Act of 2026. (Thus, such facilities may claim the credit, which provides up to $60 per metric ton of carbon oxide disposed of in secure geological storage through 2032, only for non-EOR sequestration.)

This section repeals the enhanced oil recovery tax credit (i.e., IRC §43, which provides a credit equal to 15% of qualified costs for tertiary recovery methods to extract oil from mature reservoirs) for taxable years beginning after enactment. It also makes conforming amendments to related tax provisions (e.g., IRC §§38, 45I, 45K, 45Q, 196, and 6501).