Bill > HR1946

This bill proposes to repeal section 45Q of the Internal Revenue Code, which currently provides a tax credit for carbon oxide sequestration (the process of capturing and storing carbon dioxide to reduce greenhouse gas emissions). The bill, titled the "45Q Repeal Act of 2025," would eliminate the existing tax credit for carbon capture and storage projects. Specifically, it removes all references to section 45Q from various parts of the tax code, including sections related to energy credits, clean electricity production, and tax incentives for carbon capture technologies. The bill includes numerous technical amendments to remove mentions of the carbon sequestration credit across different sections of the tax code, effectively ending the financial incentives for carbon capture projects. These changes would apply to taxable years beginning after December 31, 2025, giving businesses and industries some advance notice of the credit's elimination. The bill would impact renewable energy and industrial sectors that have been using this tax credit to offset the costs of implementing carbon capture and storage technologies.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/1946/all-info