Sponsors
Need the quick take? I'll walk you through this bill.
This is not an official government website.
Copyright © 2026 PLEJ LC. All rights reserved.
Read twice and referred to the Committee on Finance.
Adds a new paragraph (6) (codified at 45Q(h)) to the Internal Revenue Code section 45Q to terminate the applicability of paragraph (1) for carbon capture equipment whose construction begins after the date of enactment.
Adds paragraph (4) to 25C(a) to include 'natural carbon sink expenditures'; redesignates subsections (f), (g), and (h) as (g), (h), and (i), respectively; and inserts new subsection (f) defining 'natural carbon sink expenditures' and 'natural carbon sink' with specified criteria.
Introduced June 5, 2025 by Cindy Hyde-Smith · Last progress June 5, 2025
Adds expenses for “natural carbon sinks” to the existing energy-efficient home improvement tax credit so those qualifying expenses can be claimed when the property is placed in service after enactment. At the same time, it removes the enhanced tax credit for carbon oxide sequestration (internal revenue code Section 45Q) for new carbon capture equipment whose construction begins after enactment, by amending Section 45Q to exclude such equipment from the previously available credit.
Read twice and referred to the Committee on Finance.
Introduced in Senate