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119-hr-8108119th CongressWALLET

End Polluter Welfare for Enhanced Oil Recovery Act of 2026

Sponsored By: Representative Khanna, Ro [D-CA-17]

Introduced

Summary

Repeal of the Enhanced Oil Recovery tax credit and new limits on using captured carbon for oil injection. This bill would end the Section 43 credit and block the use of carbon oxide as a tertiary injectant for new qualified facilities whose construction begins after enactment.

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  • Oil producers and developers: Would lose access to the Section 43 Enhanced Oil Recovery tax credit for taxable years beginning after enactment, removing a specific tax incentive for EOR projects.
  • New carbon-capture EOR projects: Would be barred from treating carbon oxide as a tertiary injectant for any qualified facility whose construction begins after the date of enactment. This changes how new EOR projects could use captured carbon.
  • Tax-code cross-references and related credits: Would insert transitional language and conforming edits across the Internal Revenue Code, including adjustments to Sections 45Q, 45I, 45K, 196, 6501, and the Subpart D table of sections to preserve certain pre-enactment references where specified.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 1 benefits, 1 costs, 0 mixed.

End tax breaks for oil producers

If enacted, the bill would repeal the Enhanced Oil Recovery (EOR) tax credit for taxable years beginning after the date of enactment. Owners and investors in oil and EOR projects would lose that tax credit and could pay more tax. The bill would also bar new qualified facilities whose construction begins after enactment from using carbon oxide as a tertiary injectant to qualify for the Section 45Q credit. Together, these changes would remove a major tax subsidy for many oil producers and carbon-capture projects.

Clarify oil project tax references

If enacted, the bill would treat references to the old EOR credit in certain tax rules as they were the day before enactment. That would help taxpayers and project owners read Sections 45Q, 45I, and 45K after the repeal. This would not recreate the EOR credit. The transitional treatment would apply to taxable years beginning after the date of enactment.

Sponsors & CoSponsors

Sponsor

Khanna, Ro [D-CA-17]

CA • D

Cosponsors

  • Rep. Tlaib, Rashida [D-MI-12]

    MI • D

    Sponsored 3/26/2026

  • Rep. Barragán, Nanette Diaz [D-CA-44]

    CA • D

    Sponsored 3/26/2026

  • Del. Norton, Eleanor Holmes [D-DC-At Large]

    DC • D

    Sponsored 3/26/2026

  • Rep. Jayapal, Pramila [D-WA-7]

    WA • D

    Sponsored 3/26/2026

  • Rep. Frost, Maxwell [D-FL-10]

    FL • D

    Sponsored 3/26/2026

  • Rep. Ramirez, Delia C. [D-IL-3]

    IL • D

    Sponsored 3/26/2026

  • Rep. Schakowsky, Janice D. [D-IL-9]

    IL • D

    Sponsored 3/26/2026

  • Rep. Mullin, Kevin [D-CA-15]

    CA • D

    Sponsored 3/26/2026

  • Rep. Huffman, Jared [D-CA-2]

    CA • D

    Sponsored 4/2/2026

  • Rep. Goldman, Daniel S. [D-NY-10]

    NY • D

    Sponsored 4/2/2026

  • Rep. Cohen, Steve [D-TN-9]

    TN • D

    Sponsored 4/22/2026

  • Rep. Grijalva, Adelita S. [D-AZ-7]

    AZ • D

    Sponsored 8/17/2026

Roll Call Votes

No roll call votes available for this bill.

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