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Repeals section 45Q (carbon oxide sequestration credit) and strikes the item relating to such section from the table of sections for Subpart D of part IV of subchapter A.
Strikes paragraph (29) of section 38(b).
Strikes paragraph (2) of section 45V(d).
Amends section 48(a)(15) by striking specified text in subparagraph (B) and in subparagraph (C)(ii)(I).
Strikes specified text in section 45Y(b)(1)(D).
Replaces 45Y(b)(2)(D) with new text defining 'Carbon capture and sequestration equipment', excluding certain qualified carbon dioxide from greenhouse gas emissions for electricity production and requiring the Secretary, in consultation with EPA, DOE, and DOI, to establish regulations for secure geological storage; defines 'qualified carbon oxide' by reference to section 45Q(c) as in effect the day before enactment.
Strikes clause (iii) of section 45Z(d)(4)(B).
Amends section 48C(f) by striking specified text.
Strikes clause (iii) of section 48E(b)(3)(C).
Inserts text after a specified location in section 142(o)(1)(B).
And 2 more affected sections...
Ends the federal tax credit for capturing and storing carbon dioxide (the 45Q credit). It also updates the tax code to remove or replace related definitions and references tied to carbon capture and sequestration.
Starting with 2026 tax years, companies would no longer be able to claim 45Q. The bill does not include a phaseout or grandfathering. This could change the finances of planned carbon capture projects at power plants and factories and would likely increase federal tax revenue.
Referred to the House Committee on Ways and Means.
Introduced March 6, 2025 by Scott Perry · Last progress March 6, 2025