Enhancing Energy Recovery Act
Sponsored By: Representative Hern (OK)
Introduced
Summary
Parity for qualified carbon oxide uses and higher 45Q credit amounts would be created by this bill. It would redefine which uses of captured carbon oxide qualify, set new per‑ton dollar rules, and fix code cross‑references so different uses are treated consistently starting in 2025.
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- Developers that securely store captured CO2 would be placed in a clear, dedicated eligibility category, making storage-based projects explicitly credit‑eligible.
- Operators that use CO2 as a tertiary injectant for enhanced oil or natural gas recovery would be covered under the reworked rules and would see a higher per‑ton figure in specified calculations, with $36 replacing $17 where the change applies.
- Taxpayers and tax preparers would get a harmonized credit framework because the bill updates cross‑references and dollar amount formulas, and it applies to taxable years beginning after December 31, 2024.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 1 benefits, 0 costs, 0 mixed.
Higher tax credit for carbon capture businesses
This bill would change the carbon capture tax credit for businesses. It would set the base amount at $17 for tax years starting in 2025 and 2026. For tax years starting in 2027 and later, the $17 amount would be indexed to inflation using 2025 as the base year. In one specific case, the rules would use $36 instead of $17. It would also name three eligible uses: secure storage with no other use, use as a tertiary injectant in oil or gas recovery with secure storage, or other approved utilization. These changes would apply to tax years beginning after December 31, 2024. It would also update cross-references so related tax rules line up.
Sponsors & CoSponsors
Sponsor
Hern (OK)
OK • R
Cosponsors
Rep. Miller, Carol D. [R-WV-1]
WV • R
Sponsored 2/7/2025
Rep. Weber, Randy K. Sr. [R-TX-14]
TX • R
Sponsored 2/26/2025
Rep. Bergman, Jack [R-MI-1]
MI • R
Sponsored 2/26/2025
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov