Bill Details
HR.1946 - 119th Congress
Status
Latest action
2025-03-06 - Referred to the House Committee on Ways and Means.
Introduced Date
2025-03-06
Policy Area
Taxation
Committees
View committees (1)
Cosponsors
View cosponsors (2)
6
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AI Summary This summary was generated by AI from the bill text. AI can get information wrong.
This bill would end the federal tax credit for capturing and storing carbon oxide, known as the carbon oxide sequestration credit. In simple terms, it would remove a tax break that helps pay for projects that capture carbon emissions and store them underground or use them in certain ways. The bill also makes several technical changes to other tax rules that refer to this credit so the tax code stays consistent. The changes would apply starting with tax years after December 31, 2025.
- It fully repeals the current carbon oxide sequestration tax credit.
- It removes related references to that credit from other parts of the tax code, including rules tied to clean energy and tax credit programs.
- It keeps some existing language in place for certain older rules, but only for purposes of updating other sections that still refer back to the repealed credit.
- The repeal would take effect for tax years beginning after the end of 2025.
Official Summaries
No summaries available
Current Full Text
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1946 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 1946
To amend the Internal Revenue Code of 1986 to repeal the carbon oxide
sequestration credit.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 6, 2025
Mr. Perry (for himself and Mr. Khanna) 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 repeal the carbon oxide
sequestration credit.
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 ``45Q Repeal Act of 2025''.
SEC. 2. REPEAL OF CARBON OXIDE SEQUESTRATION CREDIT.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by repealing section
45Q and by striking the item relating to such section from the table of
sections for such subpart.
(b) Conforming Amendments.--
(1) Section 38(b) is amended by striking paragraph (29).
(2) Section 45V(d) is amended by striking paragraph (2).
(3) Section 48(a)(15) is amended--
(A) in subparagraph (B), by striking ``or section
45Q'', and
(B) in subparagraph (C)(ii)(I), by striking ``or
45Q''.
(4) Section 45Y(b)(1)(D) is amended by striking ``45Q,''.
(5) Section 45Y(b)(2)(D) is amended to read as follows:
``(D) Carbon capture and sequestration equipment.--
``(i) In general.--For purposes of this
subsection, the amount of greenhouse gases
emitted into the atmosphere by a facility in
the production of electricity shall not include
any qualified carbon dioxide that is captured
by the taxpayer and--
``(I) pursuant to any regulations
established under clause (ii), disposed
of by the taxpayer in secure geological
storage, or
``(II) utilized by the taxpayer in
a manner described in paragraph (5) of
such section.
``(ii) Regulations.--
``(I) In general.--The Secretary,
in consultation with the Administrator
of the Environmental Protection Agency,
the Secretary of Energy, and the
Secretary of the Interior, shall
establish regulations for determining
adequate security measures for the
geological storage of qualified carbon
oxide under clause (i) such that the
qualified carbon oxide does not escape
into the atmosphere. Such term shall
include storage at deep saline
formations, oil and gas reservoirs, and
unminable coal seams under such
conditions as the Secretary may
determine under such regulations.
``(II) Qualified carbon oxide.--For
purposes of this clause, the term
`qualified carbon oxide' has the
meaning given such term in section
45Q(c) as such section was in effect on
the day before the date of the
enactment of the 45Q Repeal Act of
2025.''.
(6) Section 45Z(d)(4)(B) is amended by striking clause
(iii).
(7) Section 48C(f) is amended by striking ``45Q,''.
(8) Section 48E(b)(3)(C) is amended by striking clause
(iii).
(9) Section 142(o)(1)(B) is amended by inserting ``, as
such section was in effect on the day before the date of the
enactment of the 45Q Repeal Act of 2025'' after ``45Q(e)(3)''.
(10) Section 6417 is amended--
(A) in subsection (b) by striking paragraph (3),
and
(B) in subsection (d)--
(i) in paragraph (1)(C), by inserting ``,
as such section was in effect on the day before
the date of the enactment of the 45Q Repeal Act
of 2025'' after ``45Q(d)'', and
(ii) in paragraph (3)(C)(i)(II)(bb), by
striking ``period described in paragraph (3)(A)
or (4)(A) of section 45Q(a) with respect to
such equipment'' and inserting ``12-year period
beginning on the date the equipment was
originally placed in service''.
(11) Section 6418(f)(1)(A) is amended by striking clause
(iii).
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2025.
<all>