S4222119th CongressWALLET

End Polluter Welfare for Enhanced Oil Recovery Act of 2026

Sponsored By: Senator Jeff Merkley

Introduced

Summary

would end the federal enhanced oil recovery (EOR) tax credit. It would also restrict use of captured carbon oxide under section 45Q for newly built EOR projects, narrowing federal incentives for oil produced using injected carbon.

Show full summary
  • Oil producers and EOR operators: The bill would repeal Section 43 of the tax code, removing the primary EOR tax credit that subsidizes oil extracted through enhanced recovery. This cuts a direct tax incentive many EOR projects rely on.
  • Carbon capture developers and new projects: The bill would add a new paragraph to section 45Q(f) to bar use of carbon oxide as a tertiary injectant for any qualified facility whose construction begins after enactment. Facilities that began construction before enactment would keep the earlier rules; the change applies to taxable years beginning after enactment.
  • Tax-code and transition effects: The bill would make multiple conforming amendments across the Internal Revenue Code to update cross-references and remove Section 43 from related provisions. It specifically adjusts references in sections such as 38, 45I, 45K, 45Q, 196, and 6501 to reflect the repeal.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 0 benefits, 2 costs, 0 mixed.

Ban carbon dioxide use in new oil projects

If enacted, the bill would prevent newly built qualified facilities from getting 45Q treatment for carbon dioxide used as a tertiary injectant. The rule applies when construction of the qualified facility begins after the date of enactment. It would take effect for taxable years beginning after the date of enactment.

Repeal EOR tax credit for oil companies

If enacted, this bill would repeal section 43 and end the enhanced oil recovery (EOR) tax credit. Taxpayers could not claim that credit for taxable years beginning after the date of enactment. The bill would also amend other tax credits (45Q, 45K, 45I) to point to the text of section 43 as it read the day before enactment. It would remove section 43 from the lists used to compute the general business credit and from an IRS timing rule in section 6501.

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Sponsors & CoSponsors

Sponsor

Jeff Merkley

OR • D

Cosponsors

  • Chris Van Hollen

    MD • D

    Sponsored 3/26/2026

  • Edward Markey

    MA • D

    Sponsored 3/26/2026

  • Cory Booker

    NJ • D

    Sponsored 3/26/2026

  • Bernie Sanders

    VT • I

    Sponsored 3/26/2026

  • Elizabeth Warren

    MA • D

    Sponsored 3/26/2026

Roll Call Votes

No roll call votes available for this bill.

View on Congress.gov

Live Policy Activity

Live

Surfaced from PRIA's policy knowledge graph — ranked by signal strength, connected by evidence.

Live · 10h ago15,853Bills1,439Wiki4 signals surfaced
Now TrackingHR8495
Moving· 4 days in stage

Financial Services and General Government Appropriations Act, 2027

Rep. Joyce, David P. [R-OH-14] (R-OH)
IntroducedApr 24
Cmte Reported
Passed Origin Chbr
Passed Second Chbr
Resolving Diffs
Enrolled
Became Law
Current StageIntroduced· 4d

Appropriations package that would fund Treasury and IRS while imposing rulemaking limits and detailed DC policy constraints, affecting taxpayers, community lenders, and DC residents.

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