H.R. 1003

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1003 Introduced in House (IH)]

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119th CONGRESS
1st Session
H. R. 1003

To amend the Internal Revenue Code of 1986 to modify the carbon oxide 
sequestration credit to ensure parity for different uses and 
utilizations of qualified carbon oxide.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

February 5, 2025

Mr. Hern of Oklahoma 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 modify the carbon oxide 
sequestration credit to ensure parity for different uses and 
utilizations of qualified carbon oxide.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Enhancing Energy Recovery Act''.

SEC. 2. PARITY FOR DIFFERENT USES AND UTILIZATIONS OF QUALIFIED CARBON 
OXIDE.

(a) In General.--Section 45Q of the Internal Revenue Code of 1986 
is amended--
(1) in subsection (a)--
(A) in paragraph (2)(B)(ii), by adding ``and'' at 
the end,
(B) in paragraph (3), by striking subparagraph (B) 
and inserting the following:
``(B)(i) disposed of by the taxpayer in secure 
geological storage and not used by the taxpayer as 
described in clause (ii) or (iii),
``(ii) used by the taxpayer as a tertiary injectant 
in a qualified enhanced oil or natural gas recovery 
project and disposed of by the taxpayer in secure 
geological storage, or
``(iii) utilized by the taxpayer in a manner 
described in subsection (f)(5).'', and
(C) by striking paragraph (4),
(2) in subsection (b)--
(A) in paragraph (1)--
(i) by striking subparagraph (A) and 
inserting the following:
``(A) Except as provided in subparagraph (B) or 
(C), the applicable dollar amount shall be an amount 
equal to--
``(i) for any taxable year beginning in a 
calendar year after 2024 and before 2027, $17, 
and
``(ii) for any taxable year beginning in a 
calendar year after 2026, an amount equal to 
the product of $17 and the inflation adjustment 
factor for such calendar year determined under 
section 43(b)(3)(B) for such calendar year, 
determined by substituting `2025' for 
`1990'.'', and
(ii) in subparagraph (B), by striking 
``shall be applied'' and all that follows 
through the period and inserting ``shall be 
applied by substituting `$36' for `$17' each 
place it appears.'',
(B) in paragraph (2)(B), by striking ``paragraphs 
(3)(A) and (4)(A)'' and inserting ``paragraph (3)(A)'', 
and
(C) in paragraph (3), by striking ``the dollar 
amounts applicable under paragraph (3) or (4)'' and 
inserting ``the dollar amount applicable under 
paragraph (3)'',
(3) in subsection (f)--
(A) in paragraph (5)(B)(i), by striking 
``(4)(B)(ii)'' and inserting ``(3)(B)(iii)'', and
(B) in paragraph (9), by striking ``paragraphs (3) 
and (4) of subsection (a)'' and inserting ``subsection 
(a)(3)'', and
(4) in subsection (h)(3)(A)(ii), by striking ``paragraph 
(3)(A) or (4)(A) of subsection (a)'' and inserting ``subsection 
(a)(3)(A)''.
(b) Conforming Amendment.--Section 6417(d)(3)(C)(i)(II)(bb) of the 
Internal Revenue Code of 1986 is amended by striking ``paragraph (3)(A) 
or (4)(A) of section 45Q(a)'' and inserting ``section 45Q(a)(3)(A)''.
(c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2024.
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