HR8108119th CongressWALLET

End Polluter Welfare for Enhanced Oil Recovery Act of 2026

Sponsored By: Representative Khanna

Introduced

Summary

Repeal of the Enhanced Oil Recovery (EOR) tax credit is the bill's central goal. It also would block the use of captured carbon oxide as a tertiary injectant for newly built qualified oil recovery facilities under the 45Q framework.

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  • Oil producers and EOR operators: Would lose the Section 43 EOR tax credit for taxable years after enactment, removing a federal tax incentive that supported extracting additional oil using enhanced recovery techniques. This affects new projects begun after the bill's effective date.
  • Carbon capture and storage developers and CO2 suppliers: Would be barred from using carbon oxide as a tertiary injectant for new qualified oil recovery facilities under the amended Section 45Q rules, narrowing one path for using captured CO2 in oil recovery.
  • Tax administration and legacy projects: The bill strips Section 43 from the Internal Revenue Code but preserves specified pre-enactment cross-references so existing references and past claims are treated according to the law as it stood before repeal.

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Bill Overview

Analyzed Economic Effects

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

End tax breaks for enhanced oil recovery

If enacted, this bill would remove major tax incentives for enhanced oil recovery. It would bar using carbon oxide (CO2) as a tertiary injectant for Section 45Q tax treatment for any qualified facility whose construction begins after the date of enactment. It would also repeal the Section 43 enhanced oil recovery tax credit and fix cross-references in the tax code. Both changes would apply to taxable years beginning after the date of enactment.

Sponsors & CoSponsors

Sponsor

Khanna

CA • D

Cosponsors

  • Rep. Tlaib, Rashida [D-MI-12]

    MI • D

    Sponsored 3/26/2026

  • Barragan

    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

  • Schakowsky

    IL • D

    Sponsored 3/26/2026

  • Mullin

    CA • D

    Sponsored 3/26/2026

  • Rep. Goldman, Daniel S. [D-NY-10]

    NY • D

    Sponsored 4/2/2026

  • Rep. Huffman, Jared [D-CA-2]

    CA • D

    Sponsored 4/2/2026

  • Cohen

    TN • D

    Sponsored 4/22/2026

Roll Call Votes

No roll call votes available for this bill.

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