I
119THCONGRESS
1
STSESSION H. R. 1946
To amend the Internal Revenue Code of 1986 to repeal the carbon oxide
sequestration credit.
IN THE HOUSE OF REPRESENTATIVES
MARCH6, 2025
Mr. P
ERRY(for himself and Mr. KHANNA) 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 repeal
the carbon oxide sequestration credit.
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 ‘‘45Q Repeal Act of 4
2025’’. 5
SEC. 2. REPEAL OF CARBON OXIDE SEQUESTRATION CRED-6
IT. 7
(a) I
NGENERAL.—Subpart D of part IV of sub-8
chapter A of chapter 1 of the Internal Revenue Code of 9
1986 is amended by repealing section 45Q and by striking 10
VerDate Sep 11 2014 01:08 Mar 21, 2025 Jkt 059200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H1946.IH H1946
kjohnson on DSK7ZCZBW3PROD with $$_JOB 2
•HR 1946 IH
the item relating to such section from the table of sections 1
for such subpart. 2
(b) C
ONFORMINGAMENDMENTS.— 3
(1) Section 38(b) is amended by striking para-4
graph (29). 5
(2) Section 45V(d) is amended by striking 6
paragraph (2). 7
(3) Section 48(a)(15) is amended— 8
(A) in subparagraph (B), by striking ‘‘or 9
section 45Q’’, and 10
(B) in subparagraph (C)(ii)(I), by striking 11
‘‘or 45Q’’. 12
(4) Section 45Y(b)(1)(D) is amended by strik-13
ing ‘‘45Q,’’. 14
(5) Section 45Y(b)(2)(D) is amended to read as 15
follows: 16
‘‘(D) C
ARBON CAPTURE AND SEQUESTRA -17
TION EQUIPMENT.— 18
‘‘(i) I
N GENERAL.—For purposes of 19
this subsection, the amount of greenhouse 20
gases emitted into the atmosphere by a fa-21
cility in the production of electricity shall 22
not include any qualified carbon dioxide 23
that is captured by the taxpayer and— 24
VerDate Sep 11 2014 01:08 Mar 21, 2025 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H1946.IH H1946
kjohnson on DSK7ZCZBW3PROD with $$_JOB 3
•HR 1946 IH
‘‘(I) pursuant to any regulations 1
established under clause (ii), disposed 2
of by the taxpayer in secure geological 3
storage, or 4
‘‘(II) utilized by the taxpayer in 5
a manner described in paragraph (5) 6
of such section. 7
‘‘(ii) R
EGULATIONS.— 8
‘‘(I) I
N GENERAL.—The Sec-9
retary, in consultation with the Ad-10
ministrator of the Environmental Pro-11
tection Agency, the Secretary of En-12
ergy, and the Secretary of the Inte-13
rior, shall establish regulations for de-14
termining adequate security measures 15
for the geological storage of qualified 16
carbon oxide under clause (i) such 17
that the qualified carbon oxide does 18
not escape into the atmosphere. Such 19
term shall include storage at deep sa-20
line formations, oil and gas reservoirs, 21
and unminable coal seams under such 22
conditions as the Secretary may deter-23
mine under such regulations. 24
VerDate Sep 11 2014 01:08 Mar 21, 2025 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H1946.IH H1946
kjohnson on DSK7ZCZBW3PROD with $$_JOB 4
•HR 1946 IH
‘‘(II) QUALIFIED CARBON 1
OXIDE.—For purposes of this clause, 2
the term ‘qualified carbon oxide’ has 3
the meaning given such term in sec-4
tion 45Q(c) as such section was in ef-5
fect on the day before the date of the 6
enactment of the 45Q Repeal Act of 7
2025.’’. 8
(6) Section 45Z(d)(4)(B) is amended by strik-9
ing clause (iii). 10
(7) Section 48C(f) is amended by striking 11
‘‘45Q,’’. 12
(8) Section 48E(b)(3)(C) is amended by strik-13
ing clause (iii). 14
(9) Section 142(o)(1)(B) is amended by insert-15
ing ‘‘, as such section was in effect on the day before 16
the date of the enactment of the 45Q Repeal Act of 17
2025’’ after ‘‘45Q(e)(3)’’. 18
(10) Section 6417 is amended— 19
(A) in subsection (b) by striking paragraph 20
(3), and 21
(B) in subsection (d)— 22
(i) in paragraph (1)(C), by inserting 23
‘‘, as such section was in effect on the day 24
before the date of the enactment of the 25
VerDate Sep 11 2014 01:08 Mar 21, 2025 Jkt 059200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H1946.IH H1946
kjohnson on DSK7ZCZBW3PROD with $$_JOB 5
•HR 1946 IH
45Q Repeal Act of 2025’’ after ‘‘45Q(d)’’, 1
and 2
(ii) in paragraph (3)(C)(i)(II)(bb), by 3
striking ‘‘period described in paragraph 4
(3)(A) or (4)(A) of section 45Q(a) with re-5
spect to such equipment’’ and inserting 6
‘‘12-year period beginning on the date the 7
equipment was originally placed in serv-8
ice’’. 9
(11) Section 6418(f)(1)(A) is amended by strik-10
ing clause (iii). 11
(c) E
FFECTIVEDATE.—The amendments made by 12
this section shall apply to taxable years beginning after 13
December 31, 2025. 14
Æ
VerDate Sep 11 2014 01:08 Mar 21, 2025 Jkt 059200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6301 E:\BILLS\H1946.IH H1946
kjohnson on DSK7ZCZBW3PROD with $$_JOB