S. 425 — Enhancing Energy Recovery Act

This section revises the Section 45Q tax credit for sequestration, utilization, or enhanced recovery use of qualified carbon oxide by (1) consolidating under subsection (a)(3) the categories of disposal in secure geological storage, use as a tertiary injectant in a qualified enhanced oil or natural gas recovery project followed by disposal in secure geological storage, and utilization in a manner described in subsection (f)(5) (i.e., conversion to specified products such as fuels, chemicals, materials, or minerals), all eligible for a credit of $17 per metric ton (from $60) for taxable years beginning after December 31, 2024, and before 2027, and the inflation-adjusted $17 amount thereafter (using 2025 as the base year); (2) retaining the $36 per metric ton (unchanged) credit for the enhanced oil or natural gas recovery category by substituting $36 for $17 in the applicable amount; and (3) making conforming amendments to cross-references and to elective payment rules under Section 6417.