Enhancing Energy Recovery Act
Analysis under review: This bill has generated analysis that may be too generic or incomplete. Clause-level evidence remains available below.
Summary
What This Bill Does
The bill amends IRC Section 45Q to consolidate carbon oxide sequestration tax credits by eliminating the lower-tier credit pathway (paragraph 4) and establishing parity among geological storage ($17-36/ton), enhanced oil/gas. It relies on tax credits. The main policy areas are Energy, Trade, Environment, and Tax Policy.
Who Benefits and How
Enhanced oil recovery (EOR) operators using carbon dioxide injection could gain revenue opportunities, Carbon utilization companies (synthetic fuels, chemicals, building materials from captured CO2) could gain revenue opportunities, and Oil & gas producers on federal and private lands using CO2-EOR could see lower costs.
Who Bears the Burden and How
Federal taxpayers (general revenue) could face higher costs.
Key Provisions
- Amends IRC Section 45Q to consolidate carbon oxide sequestration tax credits by eliminating the lower-tier credit pathway (paragraph 4) and establishing parity among geological storage ($17-36/ton), enhanced oil/gas...
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.
At a Glance
What This Bill Does
The bill amends IRC Section 45Q to consolidate carbon oxide sequestration tax credits by eliminating the lower-tier credit pathway (paragraph 4) and establishing parity among geological storage ($17-36/ton), enhanced oil/gas.
Key Policy Areas
Energy, Trade, Environment, Tax Policy
Primary Purpose
The bill amends IRC Section 45Q to consolidate carbon oxide sequestration tax credits by eliminating the lower-tier credit pathway (paragraph 4) and establishing parity among geological storage ($17-36/ton), enhanced oil/gas.
Policy Domains
Section 1 - Short Title
Identified Gains
- Enhanced oil recovery (EOR) operators using carbon dioxide injection
- Carbon utilization companies (synthetic fuels, chemicals, building materials from captured CO2)
- Oil & gas producers on federal and private lands using CO2-EOR
- Carbon capture and sequestration (CCS) facility operators - all types
- Industrial CO2 emitters with carbon capture systems (power plants, cement, steel)
Identified Costs
- Federal taxpayers (general revenue)
Sponsors
Legislative Progress
In CommitteeMr. Hern of Oklahoma introduced the following bill; which was …
Referred to the House Committee on Ways and Means.
Introduced in House
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Enhanced oil recovery (EOR) operators using carbon dioxide injection, Oil & gas producers on federal and private lands using CO2-EOR
Carbon utilization companies (synthetic fuels, chemicals, building materials from captured CO2)
Carbon capture and sequestration (CCS) facility operators - all types
Industrial CO2 emitters with carbon capture systems (power plants, cement, steel)
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "the_taxpayer"
- → Entity claiming the 45Q tax credit for carbon oxide sequestration
- "the_secretary"
- → Secretary of the Treasury (implicit in IRC amendments)
Note: No significant scope conflicts - this bill amends a single IRC section with clear definitions carried over from existing law
Key Definitions
Terms defined in this bill
The carbon oxide sequestration credit provision in the Internal Revenue Code of 1986
Using carbon oxide in products or processes as described in IRC 45Q(f)(5), including conversion to fuels, chemicals, building materials, or other products
Carbon oxide that qualifies for the 45Q credit (defined in existing IRC 45Q(c))
The per-ton tax credit value: base rate of $17 (inflation-adjusted after 2026) or enhanced rate of $36 for certain facilities
Permanent storage of carbon oxide underground in a manner that prevents atmospheric release (defined in existing IRC 45Q(d))
Use of carbon oxide as a tertiary injectant to increase oil or natural gas extraction (defined in existing IRC 45Q)
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology