Bill > S425

This bill amends Section 45Q of the Internal Revenue Code to modify the carbon oxide sequestration tax credit, ensuring parity for different uses of qualified carbon oxide. The legislation updates the tax credit structure by changing how carbon oxide disposal and utilization are defined and valued. Specifically, the bill introduces new categories for carbon oxide usage, including secure geological storage, use as a tertiary injectant in enhanced oil or natural gas recovery projects, and other utilization methods. The bill adjusts the tax credit amount to $17 per metric ton for taxable years from 2024 to 2026, with subsequent years' credits adjusted for inflation. For certain enhanced oil recovery projects, the credit amount increases to $36 per metric ton. The legislation also removes a previous separate provision for certain carbon oxide uses, consolidating the credit categories. These changes aim to provide more consistent and comprehensive tax incentives for carbon capture and utilization technologies, potentially encouraging more businesses to invest in carbon reduction strategies. The amendments will take effect for taxable years beginning after December 31, 2024.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/425/all-info