119-hr1946

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1946 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 H. R. 1946

 To amend the Internal Revenue Code of 1986 to repeal the carbon oxide 
 sequestration credit.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 March 6, 2025

 Mr. Perry (for himself and Mr. Khanna) introduced the following bill; 
 which was referred to the Committee on Ways and Means

_______________________________________________________________________

 A BILL

 To amend the Internal Revenue Code of 1986 to repeal the carbon oxide 
 sequestration credit.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``45Q Repeal Act of 2025''.

SEC. 2. REPEAL OF CARBON OXIDE SEQUESTRATION CREDIT.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by repealing 

section 45Q and by striking the item relating to such section from the table of 
sections for such subpart.

    (b) Conforming Amendments.--

    (1) Section 38

    (b) is amended by striking paragraph

    (29) .

    (2) Section 45V
            (d) is amended by striking paragraph

    (2) .

    (3) Section 48

    (a)

    (15) is amended--
        (A) in subparagraph
        (B) , by striking ``or 

section 45Q'', and
        (B) in subparagraph
            (C) 
            (ii) 
            (I) , by striking ``or 
 45Q''.

    (4) Section 45Y

    (b)

    (1)
            (D) is amended by striking ``45Q,''.

    (5) Section 45Y

    (b)

    (2)
            (D) is amended to read as follows:
 ``
            (D) Carbon capture and sequestration equipment.--
 ``
            (i) In general.--For purposes of this 
 subsection, the amount of greenhouse gases 
 emitted into the atmosphere by a facility in 
 the production of electricity shall not include 
 any qualified carbon dioxide that is captured 
 by the taxpayer and--
 ``
            (I) pursuant to any regulations 
 established under clause
            (ii) , disposed 
 of by the taxpayer in secure geological 
 storage, or
 ``
            (II) utilized by the taxpayer in 
 a manner described in paragraph

    (5) of 
 such section.
 ``
            (ii) Regulations.--
 ``
            (I) In general.--The Secretary, 
 in consultation with the Administrator 
 of the Environmental Protection Agency, 
 the Secretary of Energy, and the 
 Secretary of the Interior, shall 
 establish regulations for determining 
 adequate security measures for the 
 geological storage of qualified carbon 
 oxide under clause
            (i) such that the 
 qualified carbon oxide does not escape 
 into the atmosphere. Such term shall 
 include storage at deep saline 
 formations, oil and gas reservoirs, and 
 unminable coal seams under such 
 conditions as the Secretary may 
 determine under such regulations.
 ``
            (II) Qualified carbon oxide.--For 
 purposes of this clause, the term 
 `qualified carbon oxide' has the 
 meaning given such term in 

section 45Q
            (c) as such section was in effect on 
 the day before the date of the 
 enactment of the 45Q Repeal Act of 
 2025.''.

    (6) Section 45Z
            (d) (4)
        (B) is amended by striking clause
            (iii) .

    (7) Section 48C

    (f) is amended by striking ``45Q,''.

    (8) Section 48E

    (b)

    (3)
            (C) is amended by striking clause
            (iii) .

    (9) Section 142

    (o)

    (1)
        (B) is amended by inserting ``, as 
 such section was in effect on the day before the date of the 
 enactment of the 45Q Repeal Act of 2025'' after ``45Q

    (e)

    (3) ''.

    (10) Section 6417 is amended--
        (A) in subsection

    (b) by striking paragraph

    (3) , 
 and
        (B) in subsection
            (d) --
            (i) in paragraph

    (1)
            (C) , by inserting ``, 
 as such section was in effect on the day before 
 the date of the enactment of the 45Q Repeal Act 
 of 2025'' after ``45Q
            (d) '', and
            (ii) in paragraph

    (3)
            (C) 
            (i) 
            (II) (bb) , by 
 striking ``period described in paragraph

    (3)
        (A) or

    (4)
        (A) of 

section 45Q

    (a) with respect to 
 such equipment'' and inserting ``12-year period 
 beginning on the date the equipment was 
 originally placed in service''.

    (11) Section 6418

    (f)

    (1)
        (A) is amended by striking clause
            (iii) .
            (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2025.
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