Sponsors (21)
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For any type of property the Secretary determines is receiving a subsidy for fossil-fuel production, section 168 (the accelerated cost recovery system) shall not apply to that property placed in service in taxable years beginning after the date of such determination, subject to a publication exception.
Adds a new subsection (j) 'Termination' to section 45Q providing that the section shall not apply with respect to any qualified carbon oxide captured after the date of enactment.
Adds a new paragraph (23) to section 6103 authorizing the Secretary to disclose taxpayer identity information and return information as necessary for the public report on the carbon oxide sequestration credit.
Amends section 1031(a)(2) to add an exception excluding exchanges of real property used for fossil fuel activities from like-kind exchange nonrecognition treatment for exchanges occurring after enactment.
Amends section 167(h) (geological and geophysical expenditures) to replace references to a 7-year amortization with an '84-month period', add a mid-month convention, and strike certain paragraphs.
Amends section 250(b)(3)(A)(i) (Foreign-derived deduction eligible income) to include income derived from fossil fuel activities for taxable years beginning after enactment.
Adds a new subsection to section 613 terminating percentage depletion benefits with respect to coal, lignite, and oil shale (subject to specified exceptions) for taxable years beginning after enactment, and makes conforming amendments.
Amends section 631(c) to remove coal (including lignite) from the list of resources entitled to certain capital gains treatment, effectively terminating capital gains treatment for royalties from coal.
Referred to the Committee on Ways and Means, and in addition to the Committees on Transportation and Infrastructure, Natural Resources, Science, Space, and Technology, Energy and Commerce, Agriculture, Appropriations, Financial Services, and Foreign Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Introduced July 23, 2025 by Ilhan Omar · Last progress July 23, 2025
This bill aims to end federal support for oil, gas, and coal. It cuts many tax breaks, shuts down the Office of Fossil Energy and Carbon Management, and blocks U.S. funding for fossil projects at home and abroad. It also removes limits on what companies owe after offshore spills and raises industry fees to help pay for cleanups.
Key changes include tighter taxes and rules on fossil fuels and related activities. The oil spill fee increases, pollution taxes are extended to tar sands and coal‑to‑liquid fuels, the carbon‑capture tax credit ends for newly captured carbon, and more foreign oil income is taxed right away. U.S. agencies and international banks are barred from financing fossil projects, and some transportation and rural utility funds can’t support fossil fuel use or transport. An EPA rule to charge for wasted methane is restored.
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