Us Congress 2025-2026 Regular Session

Us Congress House Bill HB1946 Compare Versions

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Old	New	Differences
1	1	I
2	2	119THCONGRESS
3	3	1
4	4	STSESSION H. R. 1946
5	5	To amend the Internal Revenue Code of 1986 to repeal the carbon oxide
6	6	sequestration credit.
7	7	IN THE HOUSE OF REPRESENTATIVES
8	8	MARCH6, 2025
9	9	Mr. P
10	10	ERRY(for himself and Mr. KHANNA) introduced the following bill; which
11	11	was referred to the Committee on Ways and Means
12	12	A BILL
13	13	To amend the Internal Revenue Code of 1986 to repeal
14	14	the carbon oxide sequestration credit.
15	15	Be it enacted by the Senate and House of Representa-1
16	16	tives of the United States of America in Congress assembled, 2
17	17	SECTION 1. SHORT TITLE. 3
18	18	This Act may be cited as the ‘‘45Q Repeal Act of 4
19	19	2025’’. 5
20	20	SEC. 2. REPEAL OF CARBON OXIDE SEQUESTRATION CRED-6
21	21	IT. 7
22	22	(a) I
23	23	NGENERAL.—Subpart D of part IV of sub-8
24	24	chapter A of chapter 1 of the Internal Revenue Code of 9
25	25	1986 is amended by repealing section 45Q and by striking 10
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28	28	•HR 1946 IH
29	29	the item relating to such section from the table of sections 1
30	30	for such subpart. 2
31	31	(b) C
32	32	ONFORMINGAMENDMENTS.— 3
33	33	(1) Section 38(b) is amended by striking para-4
34	34	graph (29). 5
35	35	(2) Section 45V(d) is amended by striking 6
36	36	paragraph (2). 7
37	37	(3) Section 48(a)(15) is amended— 8
38	38	(A) in subparagraph (B), by striking ‘‘or 9
39	39	section 45Q’’, and 10
40	40	(B) in subparagraph (C)(ii)(I), by striking 11
41	41	‘‘or 45Q’’. 12
42	42	(4) Section 45Y(b)(1)(D) is amended by strik-13
43	43	ing ‘‘45Q,’’. 14
44	44	(5) Section 45Y(b)(2)(D) is amended to read as 15
45	45	follows: 16
46	46	‘‘(D) C
47	47	ARBON CAPTURE AND SEQUESTRA -17
48	48	TION EQUIPMENT.— 18
49	49	‘‘(i) I
50	50	N GENERAL.—For purposes of 19
51	51	this subsection, the amount of greenhouse 20
52	52	gases emitted into the atmosphere by a fa-21
53	53	cility in the production of electricity shall 22
54	54	not include any qualified carbon dioxide 23
55	55	that is captured by the taxpayer and— 24
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58	58	•HR 1946 IH
59	59	‘‘(I) pursuant to any regulations 1
60	60	established under clause (ii), disposed 2
61	61	of by the taxpayer in secure geological 3
62	62	storage, or 4
63	63	‘‘(II) utilized by the taxpayer in 5
64	64	a manner described in paragraph (5) 6
65	65	of such section. 7
66	66	‘‘(ii) R
67	67	EGULATIONS.— 8
68	68	‘‘(I) I
69	69	N GENERAL.—The Sec-9
70	70	retary, in consultation with the Ad-10
71	71	ministrator of the Environmental Pro-11
72	72	tection Agency, the Secretary of En-12
73	73	ergy, and the Secretary of the Inte-13
74	74	rior, shall establish regulations for de-14
75	75	termining adequate security measures 15
76	76	for the geological storage of qualified 16
77	77	carbon oxide under clause (i) such 17
78	78	that the qualified carbon oxide does 18
79	79	not escape into the atmosphere. Such 19
80	80	term shall include storage at deep sa-20
81	81	line formations, oil and gas reservoirs, 21
82	82	and unminable coal seams under such 22
83	83	conditions as the Secretary may deter-23
84	84	mine under such regulations. 24
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87	87	•HR 1946 IH
88	88	‘‘(II) QUALIFIED CARBON 1
89	89	OXIDE.—For purposes of this clause, 2
90	90	the term ‘qualified carbon oxide’ has 3
91	91	the meaning given such term in sec-4
92	92	tion 45Q(c) as such section was in ef-5
93	93	fect on the day before the date of the 6
94	94	enactment of the 45Q Repeal Act of 7
95	95	2025.’’. 8
96	96	(6) Section 45Z(d)(4)(B) is amended by strik-9
97	97	ing clause (iii). 10
98	98	(7) Section 48C(f) is amended by striking 11
99	99	‘‘45Q,’’. 12
100	100	(8) Section 48E(b)(3)(C) is amended by strik-13
101	101	ing clause (iii). 14
102	102	(9) Section 142(o)(1)(B) is amended by insert-15
103	103	ing ‘‘, as such section was in effect on the day before 16
104	104	the date of the enactment of the 45Q Repeal Act of 17
105	105	2025’’ after ‘‘45Q(e)(3)’’. 18
106	106	(10) Section 6417 is amended— 19
107	107	(A) in subsection (b) by striking paragraph 20
108	108	(3), and 21
109	109	(B) in subsection (d)— 22
110	110	(i) in paragraph (1)(C), by inserting 23
111	111	‘‘, as such section was in effect on the day 24
112	112	before the date of the enactment of the 25
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115	115	•HR 1946 IH
116	116	45Q Repeal Act of 2025’’ after ‘‘45Q(d)’’, 1
117	117	and 2
118	118	(ii) in paragraph (3)(C)(i)(II)(bb), by 3
119	119	striking ‘‘period described in paragraph 4
120	120	(3)(A) or (4)(A) of section 45Q(a) with re-5
121	121	spect to such equipment’’ and inserting 6
122	122	‘‘12-year period beginning on the date the 7
123	123	equipment was originally placed in serv-8
124	124	ice’’. 9
125	125	(11) Section 6418(f)(1)(A) is amended by strik-10
126	126	ing clause (iii). 11
127	127	(c) E
128	128	FFECTIVEDATE.—The amendments made by 12
129	129	this section shall apply to taxable years beginning after 13
130	130	December 31, 2025. 14
131	131	Æ
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