I
119THCONGRESS
1
STSESSION H. R. 1003
To amend the Internal Revenue Code of 1986 to modify the carbon oxide
sequestration credit to ensure parity for different uses and utilizations
of qualified carbon oxide.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY5, 2025
Mr. H
ERNof Oklahoma introduced the following bill; which was referred to
the Committee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to modify
the carbon oxide sequestration credit to ensure parity
for different uses and utilizations of qualified carbon
oxide.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘Enhancing Energy Re-4
covery Act’’. 5
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SEC. 2. PARITY FOR DIFFERENT USES AND UTILIZATIONS 1
OF QUALIFIED CARBON OXIDE. 2
(a) I
NGENERAL.—Section 45Q of the Internal Rev-3
enue Code of 1986 is amended— 4
(1) in subsection (a)— 5
(A) in paragraph (2)(B)(ii), by adding 6
‘‘and’’ at the end, 7
(B) in paragraph (3), by striking subpara-8
graph (B) and inserting the following: 9
‘‘(B)(i) disposed of by the taxpayer in se-10
cure geological storage and not used by the tax-11
payer as described in clause (ii) or (iii), 12
‘‘(ii) used by the taxpayer as a tertiary 13
injectant in a qualified enhanced oil or natural 14
gas recovery project and disposed of by the tax-15
payer in secure geological storage, or 16
‘‘(iii) utilized by the taxpayer in a manner 17
described in subsection (f)(5).’’, and 18
(C) by striking paragraph (4), 19
(2) in subsection (b)— 20
(A) in paragraph (1)— 21
(i) by striking subparagraph (A) and 22
inserting the following: 23
‘‘(A) Except as provided in subparagraph 24
(B) or (C), the applicable dollar amount shall 25
be an amount equal to— 26
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‘‘(i) for any taxable year beginning in 1
a calendar year after 2024 and before 2
2027, $17, and 3
‘‘(ii) for any taxable year beginning in 4
a calendar year after 2026, an amount 5
equal to the product of $17 and the infla-6
tion adjustment factor for such calendar 7
year determined under section 43(b)(3)(B) 8
for such calendar year, determined by sub-9
stituting ‘2025’ for ‘1990’.’’, and 10
(ii) in subparagraph (B), by striking 11
‘‘shall be applied’’ and all that follows 12
through the period and inserting ‘‘shall be 13
applied by substituting ‘$36’ for ‘$17’ each 14
place it appears.’’, 15
(B) in paragraph (2)(B), by striking 16
‘‘paragraphs (3)(A) and (4)(A)’’ and inserting 17
‘‘paragraph (3)(A)’’, and 18
(C) in paragraph (3), by striking ‘‘the dol-19
lar amounts applicable under paragraph (3) or 20
(4)’’ and inserting ‘‘the dollar amount applica-21
ble under paragraph (3)’’, 22
(3) in subsection (f)— 23
(A) in paragraph (5)(B)(i), by striking 24
‘‘(4)(B)(ii)’’ and inserting ‘‘(3)(B)(iii)’’, and 25
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(B) in paragraph (9), by striking ‘‘para-1
graphs (3) and (4) of subsection (a)’’ and in-2
serting ‘‘subsection (a)(3)’’, and 3
(4) in subsection (h)(3)(A)(ii), by striking 4
‘‘paragraph (3)(A) or (4)(A) of subsection (a)’’ and 5
inserting ‘‘subsection (a)(3)(A)’’. 6
(b) C
ONFORMING AMENDMENT.—Section 7
6417(d)(3)(C)(i)(II)(bb) of the Internal Revenue Code of 8
1986 is amended by striking ‘‘paragraph (3)(A) or (4)(A) 9
of section 45Q(a)’’ and inserting ‘‘section 45Q(a)(3)(A)’’. 10
(c) E
FFECTIVEDATE.—The amendments made by 11
this section shall apply to taxable years beginning after 12
December 31, 2024. 13
Æ
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