Bill > HR1003

This bill amends Section 45Q of the Internal Revenue Code to modify the tax credit for carbon oxide sequestration, ensuring more consistent and equitable treatment of different methods of carbon oxide utilization. Specifically, the bill updates the credit structure for carbon oxide disposal and utilization, including three primary scenarios: (1) secure geological storage without further use, (2) use as a tertiary injectant in enhanced oil or natural gas recovery projects with subsequent secure storage, and (3) utilization through other approved methods. The bill increases the tax credit amount to $17 per metric ton for taxable years beginning after 2024, with provisions for inflation adjustments after 2026. For certain advanced or more complex carbon capture projects, the credit may be higher at $36 per metric ton. The changes aim to provide more consistent incentives for carbon capture and storage technologies across different industries and application methods, with the amendments taking effect for taxable years beginning after December 31, 2024. This legislation is part of broader efforts to encourage carbon reduction and support emerging carbon management technologies.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/1003/all-info