Enhancing Energy Recovery Act

This bill changes a federal tax credit for capturing carbon oxide (captured carbon) so the same credit applies no matter how the captured carbon is handled. It treats three paths equally: storing it deep underground, using it to help recover oil or natural gas and then storing it, or using it in other approved ways. The goal is to create “parity” across these uses so one path isn’t favored over another.

It also resets the credit amount to $17 for tax years that start after 2024 and before 2027, with the amount rising by inflation for tax years starting after 2026. These changes apply to tax years beginning after December 31, 2024.

• Who is affected: Companies that capture carbon oxide, including those that store it, use it for enhanced oil or natural gas recovery, or use it in other approved ways.
• What changes: One credit level for all approved uses; the credit amount is $17 at first, then adjusts with inflation later.
• When: Applies to tax years beginning after December 31, 2024.