,,ii  #aadth ,,congress  #b;d ,session  
,s4 #cagi  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,july #ac1     
#bjaf ,ms4 ,heitkamp 7for herself1 ,mr4 
,whitehouse1 ,mr4 ,tester1 ,mr4 ,schatz1
 ,mr4 ,booker1 and ,mr4 ,kaine7         
introduced the following bill2 which was
 read twice and referred to the         
,committee on ,finance  ,a ,,bill  ,to  
amend the ,internal ,revenue ,code of   
#aihf to improve and extend the credit  
for carbon dioxide sequestration4  #a4  
,short title ,this ,act may be cited as 
the ,carbon ,capture ,utilization and   
,storage ,act4  #b4 ,extension of       
enhanced carbon dioxide sequestration   
credit  7a7 ,in general ,section #de,q  
of the ,internal ,revenue ,code of #aihf
 is amended to read as follows3  #de,q4 
,credit for carbon dioxide sequestration
  7a7 ,general rule ,for purposes of    
section #ch1 the carbon dioxide         
sequestration credit for any taxable    
year is an amount equal to the sum of-- 
7#a7 #bj per metric ton of qualified    

carbon dioxide which is-- 7,a7 captured 
by the taxpayer using qualified carbon  
capture equipment which is originally   
placed in service at a qualified        
facility before the date of the         
enactment of the ,carbon ,capture       
,utilization and ,storage ,act1 and     
7,b7 disposed of by the taxpayer in     
secure geological storage and not used  
by the taxpayer as described in         
paragraph 7#b77;,b71  7#b7 #aj per      
metric ton of qualified carbon dioxide  
which is-- 7,a7 captured by the taxpayer
 using qualified carbon capture         
equipment which is originally placed in 
service at a qualified facility before  
the date of the enactment of the ,carbon
 ,capture ,utilization and ,storage     
,act1 and  7,b7  7i7 used by the        
taxpayer as a tertiary injectant in a   
qualified enhanced oil or natural gas   
recovery project and disposed of by the 
taxpayer in secure geological storage1  
or  7ii7 utilized by the taxpayer in a  
manner described in subsection 7e77#g71 

7#c7 the applicable dollar amount 7as   
determined under subsection 7b77#a77 per
 metric ton of qualified carbon dioxide 
which is--  7,a7 captured by the        
taxpayer using qualified carbon capture 
equipment which is originally placed in 
service at a qualified facility on or   
after the date of the enactment of the  
,carbon ,capture ,utilization and       
,storage ,act1 during the #ab-year      
period beginning on the date the        
equipment was originally placed in      
service1 and  7,b7 disposed of by the   
taxpayer in secure geological storage   
and not used by the taxpayer as         
described in paragraph 7#d77;,b71 and   
7#d7 the applicable dollar amount 7as   
determined under subsection 7b77#a77 per
 metric ton of qualified carbon dioxide 
which is--  7,a7 captured by the        
taxpayer using qualified carbon capture 
equipment which is originally placed in 
service at a qualified facility on or   
after the date of the enactment of the  
,carbon ,capture ,utilization and       

,storage ,act1 during the #ab-year      
period beginning on the date the        
equipment was originally placed in      
service1 and  7,b7  7i7 used by the     
taxpayer as a tertiary injectant in a   
qualified enhanced oil or natural gas   
recovery project and disposed of by the 
taxpayer in secure geological storage1  
or  7ii7 utilized by the taxpayer in a  
manner described in subsection 7e77#g74 
7b7 ,applicable dollar amount2          
additional equipment2 election  7#a7    
,applicable dollar amount  7,a7 ,in     
general ,the applicable dollar amount   
shall be an amount equal to--  7i7 for  
any taxable year beginning in a calendar
 year after #bjae and ending before     
#bjbf-- 7,i7 for purposes of paragraph  
7#c7 of subsection 7a71 the dollar      
amount established by linear            
interpolation between #bb4ff and #ej for
 each calendar year during such period1 
and  7,,ii7 for purposes of paragraph   
7#d7 of such subsection1 the dollar     
amount established by linear            

interpolation between #ab4hc and #ce for
 each calendar year during such period1 
and  7ii7 for any taxable year beginning
 in a calendar year after #bjbe-- 7,i7  
for purposes of paragraph 7#c7 of       
subsection 7a71 an amount equal to the  
product of #ej and the inflation        
adjustment factor for such calendar year
 determined under section               
#dc7;b77#c77;,b7 for such calendar year1
 determined by substituting #bjbd for   
#aiij1 and  7,,ii7 for purposes of      
paragraph 7#d7 of such subsection1 an   
amount equal to the product of #ce and  
the inflation adjustment factor for such
 calendar year determined under section 
#dc7;b77#c77;,b7 for such calendar year1
 determined by substituting #bjbd for   
#aiij4  7,b7 ,rounding ,the applicable  
dollar amount determined under          
subparagraph 7,a7 shall be rounded to   
the nearest cent4  7#b7 ,installation of
 additional carbon capture equipment on 
existing qualified facility ,in the case
 of a qualified facility placed in      

service before the date of the enactment
 of the ,carbon ,capture ,utilization   
and ,storage ,act1 for which additional 
qualified carbon capture equipment is   
placed in service on or after the date  
of the enactment of the ,carbon ,capture
 ,utilization and ,storage ,act1 the    
amount of qualified carbon dioxide which
 is captured by the taxpayer shall be   
equal to--  7,a7 for purposes of        
paragraphs 7#a77;,a7 and 7#b77;,a7 of   
subsection 7a71 the lesser of-- 7i7 the 
total amount of qualified carbon dioxide
 captured at such facility for the      
taxable year1 or  7ii7 the total amount 
of the carbon dioxide capture capacity  
of the qualified carbon capture         
equipment in service at such facility on
 the day before the date of the         
enactment of the ,carbon ,capture       
,utilization and ,storage ,act1 and     
7,b7 for purposes of paragraphs         
7#c77;,a7 and 7#d77;,a7 of such         
subsection1 an amount 7not less than    
zero7 equal to the excess of--  7i7 the 

amount described in clause 7i7 of       
subparagraph 7,a71 over  7ii7 the amount
 described in clause 7ii7 of such       
subparagraph4  7#c7 ,election ,for      
purposes of determining the carbon      
dioxide sequestration credit under this 
section1 a taxpayer may elect to have   
the dollar amounts applicable under     
paragraph 7#a7 or 7#b7 of subsection 7a7
 apply in lieu of the dollar amounts    
applicable under paragraph 7#c7 or 7#d7 
of such subsection for each metric ton  
of qualified carbon dioxide which is    
captured by the taxpayer using qualified
 carbon capture equipment which is      
originally placed in service at a       
qualified facility on or after the date 
of the enactment of the ,carbon ,capture
 ,utilization and ,storage ,act4  7c7   
,qualified carbon dioxide ,for purposes 
of this section-- 7#a7 ,in general ,the 
term qualified carbon dioxide means     
carbon dioxide captured from an         
industrial source which--  7,a7 would   
otherwise be released into the          

atmosphere as industrial emission of    
greenhouse gas1 and  7,b7 is measured at
 the source of capture and verified at  
the point of disposal1 injection1 or    
utilization4  7#b7 ,recycled carbon     
dioxide ,the term qualified carbon      
dioxide includes the initial deposit of 
captured carbon dioxide used as a       
tertiary injectant4 ,such term does not 
include carbon dioxide that is          
recaptured1 recycled1 and re-injected as
 part of the enhanced oil and natural   
gas recovery process4  7d7 ,qualified   
facility and qualified carbon capture   
equipment  7#a7 ,qualified facility ,for
 purposes of this section1 the term     
qualified facility means any industrial 
facility-- 7,a7 7i7 the construction of 
which begins before ,january #a1 #bjbd1 
and--  7,i7 the original planning and   
design for such facility includes       
installation of qualified carbon capture
 equipment1 or  7,,ii7 construction of  
qualified carbon capture equipment      
begins before such date1 or  7ii7 which 

is placed in service before ,january #a1
 #bjbd1 and includes installation of    
qualified carbon capture equipment1     
provided that construction of such      
carbon capture equipment begins before  
such date1 and  7,b7 which captures--   
7i7 in the case of a facility which     
emits not more than #ejj1jjj metric tons
 of carbon dioxide into the atmosphere  
during the taxable year1 not less than  
#be1jjj metric tons of qualified carbon 
dioxide during the taxable year which is
 utilized in a manner described in      
subsection 7e77#g71  7ii7 in the case of
 an electricity generating facility     
which is not described in clause 7i71   
not less than #ejj1jjj metric tons of   
qualified carbon dioxide during the     
taxable year1 or  7iii7 in the case of a
 facility not described in clause 7i7 or
 7ii71 not less than #ajj1jjj metric    
tons of qualified carbon dioxide during 
the taxable year4  7#b7 ,qualified      
carbon capture equipment ,for purposes  
of this section1 the term qualified     

carbon capture equipment means-- 7,a7   
carbon capture equipment placed in      
service before ,january #a1 #bjbd1 and  
7,b7 carbon capture equipment the       
construction of which begins before such
 date4  7e7 ,special rules and other    
definitions ,for purposes of this       
section--  7#a7 ,only carbon dioxide    
captured and disposed of or used within 
the ,united ,states taken into account  
,the credit under this section shall    
apply only with respect to qualified    
carbon dioxide the capture and disposal1
 use1 or utilization of which is        
within--  7,a7 the ,united ,states      
7within the meaning of section #fch7a771
 or  7,b7 a possession of the ,united   
,states 7within the meaning of section  
#fch7b774  7#b7 ,secure geological      
storage ,the ,secretary1 in consultation
 with the ,administrator of the         
,environmental ,protection ,agency1 the 
,secretary of ,energy1 and the          
,secretary of the ,interior1 shall      
establish regulations for determining   

adequate security measures for the      
geological storage of carbon dioxide    
under subsection 7a7 such that the      
carbon dioxide does not escape into the 
atmosphere4 ,such term shall include    
storage at deep saline formations1 oil  
and gas reservoirs1 and unminable coal  
seams under such conditions as the      
,secretary may determine under such     
regulations4  7#c7 ,tertiary injectant  
,the term tertiary injectant has the    
same meaning as when used within section
 #aic7;b77#a74  7#d7 ,qualified enhanced
 oil or natural gas recovery project    
,the term qualified enhanced oil or     
natural gas recovery project has the    
meaning given the term qualified        
enhanced oil recovery project by section
 #dc7;c77#b71 by substituting crude oil 
or natural gas for crude oil in         
subparagraph 7,a77i7 thereof4  7#e7     
,credit attributable to taxpayer  7,a7  
,in general ,except as provided         
subparagraph 7,b7 or in any regulations 
prescribed by the ,secretary1 any credit

 under this section shall be            
attributable to--  7i7 in the case of   
qualified carbon dioxide captured using 
qualified carbon capture equipment which
 is originally placed in service at a   
qualified facility before the date of   
the enactment of the ,carbon ,capture   
,utilization and ,storage ,act1 the     
person that captures and physically or  
contractually ensures the disposal1     
utilization1 or use as a tertiary       
injectant of such qualified carbon      
dioxide1 and  7ii7 in the case of       
qualified carbon dioxide captured using 
qualified carbon capture equipment which
 is originally placed in service at a   
qualified facility on or after the date 
of the enactment of the ,carbon ,capture
 ,utilization and ,storage ,act1 the    
person that owns the qualified carbon   
capture equipment and physically or     
contractually ensures the capture and   
disposal1 utilization1 or use as a      
tertiary injectant of such qualified    
carbon dioxide4  7,b7 ,election ,if the 

person described in subparagraph 7,a7   
makes an election under this            
subparagraph in such time and manner as 
the ,secretary may prescribe by         
regulations1 the credit under this      
section--  7i7 shall be allowable to the
 person that disposes of the qualified  
carbon dioxide1 utilizes the qualified  
carbon dioxide1 or uses the qualified   
carbon dioxide as a tertiary injectant1 
and  7ii7 shall not be allowable to the 
person described in subparagraph 7,a74  
7#f7 ,recapture ,the ,secretary shall1  
by regulations1 provide for recapturing 
the benefit of any credit allowable     
under subsection 7a7 with respect to any
 qualified carbon dioxide which ceases  
to be captured1 disposed of1 or used as 
a tertiary injectant in a manner        
consistent with the requirements of this
 section4  7#g7 ,utilization of         
qualified carbon dioxide  7,a7 ,in      
general ,for purposes of this section1  
utilization of qualified carbon dioxide 
means-- 7i7 the fixation of such        

qualified carbon dioxide through        
photosynthesis or chemosynthesis1 such  
as through the growing of algae or      
bacteria1  7ii7 the chemical conversion 
of such qualified carbon dioxide to a   
material or chemical compound in which  
such qualified carbon dioxide is        
securely stored1 or  7iii7 the use of   
such qualified carbon dioxide for any   
other purpose for which a commercial    
market exists 7with the exception of use
 as a tertiary injectant in a qualified 
enhanced oil or natural gas recovery    
project71 as determined by the          
,secretary4  7,b7 ,measurement  7i7 ,in 
general ,for purposes of determining the
 amount of qualified carbon dioxide     
utilized by the taxpayer under paragraph
 7#b77;,b77ii7 or 7#d77;,b77ii7 of      
subsection 7a71 such amount shall be    
equal to the metric tons of carbon      
dioxide which the taxpayer demonstrates1
 based upon an analysis of lifecycle    
greenhouse gas emissions and subject to 
such requirements as the ,secretary1 in 

consultation with the ,secretary of     
,energy and the ,administrator of the   
,environmental ,protection ,agency1     
determines appropriate1 were captured   
and prevented from escaping into the    
atmosphere through use of a process     
described in subparagraph 7,a74  7ii7   
,lifecycle greenhouse gas emissions ,for
 purposes of clause 7i71 the term       
lifecycle greenhouse gas emissions has  
the same meaning given such term under  
subparagraph 7,h7 of section #baa7o77#a7
 of the ,clean ,air ,act 7#db ,u4,s4,c4 
#gede7o77#a771 as in effect on the date 
of the enactment of the ,carbon ,capture
 ,utilization and ,storage ,act1 except 
that product shall be substituted for   
fuel each place it appears in such      
subparagraph4  7#h7 ,inflation          
adjustment ,in the case of any taxable  
year beginning in a calendar year after 
#bjji1 there shall be substituted for   
each dollar amount contained in         
paragraphs 7#a7 and 7#b7 of subsection  
7a7 an amount equal to the product of-- 

7,a7 such dollar amount1 multiplied by  
7,b7 the inflation adjustment factor for
 such calendar year determined under    
section #dc7;b77#c77;,b7 for such       
calendar year1 determined by            
substituting #bjjh for #aiij4  7f7      
,application of section for certain     
carbon capture equipment ,in the case of
 any qualified carbon capture equipment 
placed in service before the date of the
 enactment of the ,carbon ,capture      
,utilization and ,storage ,act1 the     
credit under this section shall apply   
with respect to qualified carbon dioxide
 captured using such equipment before   
the end of the calendar year in which   
the ,secretary1 in consultation with the
 ,administrator of the ,environmental   
,protection ,agency1 certifies that     
#ge1jjj1jjj metric tons of qualified    
carbon dioxide have been taken into     
account in accordance with paragraphs   
7#a7 and 7#b7 of subsection 7a7 during  
the period beginning after ,october #c1 
#bjjh4  7g7 ,regulations ,the ,secretary

 may prescribe such regulations and     
other guidance as may be necessary or   
appropriate to carry out this section1  
including regulations or other guidance 
to--  7#a7 ensure proper allocation     
under subsection 7a7 for qualified      
carbon dioxide captured by a taxpayer   
during the taxable year ending after the
 date of the enactment of the ,carbon   
,capture ,utilization and ,storage ,act1
 and  7#b7 determine whether a facility 
satisfies the requirements under        
subsection 7d77#a7 during such taxable  
year4  4  7b7 ,effective date ,the      
amendments made by this section shall   
take effect on the date of the enactment
 of this ,act4