Bill · S. 425· Senate(119-S-425)
Enhancing Energy Recovery Act
- Introduced
- 2/5/2025
- Last activity
- 2/5/2025 — Read twice and referred to the Committee on Finance. (text: CR S668)
- Sponsored by
- John Barrasso
- Cosponsors
- - 6 - 0
- Introduced
- In Committee
What this bill would do
The Enhancing Energy Recovery Act aims to amend the Internal Revenue Code of 1986 regarding carbon oxide sequestration credits. It seeks to modify the existing code to ensure parity across different uses and utilizations of qualified carbon oxide. The bill updates Section 45Q to include specific uses such as tertiary injectants in qualified enhanced oil or natural gas recovery projects. It also adjusts the applicable dollar amounts for these credits. These changes are intended to apply to taxable years beginning after December 31, 2024.
Yes· 3 of 6
Does this cut taxes for small businesses?+3
The bill expands tax credit eligibility for carbon oxide sequestration uses, which benefits companies involved in energy recovery projects.
Would business owners be better off under this?+3
The bill provides expanded tax credit opportunities for businesses involved in carbon oxide sequestration and energy recovery.
Is this likely to create jobs?+2
By providing parity for carbon oxide use in enhanced oil and gas recovery, the bill incentivizes activity in those sectors.
The opposite
Does this reduce how much oil, gas and coal is produced?-2
The bill supports enhanced oil and natural gas recovery projects, which may prolong or incentivize fossil fuel extraction.
Who it would affect, and how
Potential Positive Impacts for People
-
Credit Parity for Carbon Oxide Uses: The bill modifies Section 45Q to include the use of carbon oxide as a tertiary injectant in qualified enhanced oil or natural gas recovery projects, which is then disposed of in secure geological storage (Section 2(a)(1)(B)).
-
Adjusted Dollar Amounts: For taxable years beginning after 2024 and before 2027, the applicable dollar amount is set at $17 (Section 2(a)(2)(A)(i)).
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Inflation Adjustments: For taxable years beginning after 2026, the dollar amount is adjusted by an inflation adjustment factor to account for economic changes (Section 2(a)(2)(A)(ii)).
Potential Negative Impacts for People
- No specific negative impacts or burdens are explicitly mentioned in the provided text.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Economy And Finance
- Reduces Small Business Taxes+3Improves Economic Growth+2Increases Job Creation+2
- Demographic And Interest Groups
- Good For Business Owners+3Good For Farmers+1
- Environment Energy And Infrastructure
- Reduces Carbon Emissions+2Reduces Fossil Fuel Production-2
- 2/20/2025
- 1 Cosponsor added.
- 2/5/2025
- Read twice and referred to the Committee on Finance. (text: CR S668)
- 5 Cosponsors added.
- Introduced in Senate
2 bills Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
Bill CassidyRepublican · Louisiana
Kevin CramerRepublican · North Dakota
John HoevenRepublican · North Dakota
James JusticeRepublican · West Virginia
James LankfordRepublican · Oklahoma
Tim SheehyRepublican · Montana