End Polluter Welfare for Enhanced Oil Recovery

Summary#

This bill would change parts of the federal tax code about using captured carbon for enhanced oil recovery (EOR). It would stop allowing the tax rule that treats carbon oxide used as a tertiary injectant for new qualified facilities built after the bill is enacted. It would also repeal section 43, which is the federal enhanced oil recovery tax credit, and make related technical changes. The changes apply to taxable years beginning after the date the bill becomes law.

What it means for you#

• Companies that begin construction of a "qualified facility" after this law is enacted could no longer rely on the carbon-oxide tertiary-injectant rule to claim the credit described in section 45Q.
• The separate enhanced oil recovery tax credit in section 43 would be removed for taxable years that begin after the law takes effect.
• The bill was introduced in the House and referred to the Committee on Ways and Means.

Expenses#

No publicly available information.

Proponents' View#

Sponsors include Representatives Ro Khanna, Rashida Tlaib, Nanette Barragán, Eleanor Norton, Pramila Jayapal, Maxwell Frost, Delia Ramirez, Jan Schakowsky, and others. No publicly available information in the bill text about their detailed statements or projected effects.

Opponents' View#

No publicly available information.