,i #aaeth ,,congress #ast ,session ,h4 ,r4 #cgfa ,,in ,,the ,,house ,,of ,,representatives ,september #ac1 #bjag,mr4 ,conaway 7for himself1 ,mr4 ,brady of ,pennsylvania1 ,mr4 ,costello of ,pennsylvania1 ,mr4 ,mc,kinley1 ,mr4 ,cramer1 ,mr4 ,murphy of ,pennsylvania1 ,mr4 ,jenkins of ,west ,virginia1 ,mr4 ,peterson1 ,mr4 ,tipton1 ,mr4 ,costa1 ,mr4 ,rodney ,davis of ,illinois1 ,mr4 ,gene ,green of ,texas1 ,mr4 ,cole1 ,ms4 ,sinema1 ,mr4 ,hurd1 ,mr4 ,barr1 ,mr4 ,bishop of ,georgia1 ,mr4 ,moolenaar1 ,mr4 ,michael ,f4 ,doyle of ,pennsylvania1 ,ms4 ,stefanik1 ,mr4 ,huizenga1 ,mr4 ,barton1 ,mr4 ,pearce1 ,mr4 ,bost1 ,mr4 ,johnson of ,ohio1 ,mr4 ,veasey1 ,mr4 ,aderholt1 ,ms4 ,kaptur1 ,mr4 ,curbelo of ,florida1 and ,mr4 ,hudson7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,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 ,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 carbon capture equipment which is originally placed in service at a qualified facility before the date of the enactment of the ,carbon ,capture ,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 carbon capture equipment which is originally placed in service at a qualified facility before the date of the enactment of the ,carbon ,capture ,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 per metric ton of qualified carbon dioxide which is-- 7,a7 captured by the taxpayer using 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 ,act1 during the #ae-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 per metric ton of qualified carbon dioxide which is-- 7,a7 captured by the taxpayer using 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 ,act1 during the #ae-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 ,a taxpayer that captures qualified carbon dioxide as provided under paragraph 7#a71 7#b71 7#c7 or 7#d7 and that enters into contractual arrangements with another person to ensure the disposal1 use1 or utilization required under paragraph 7#a71 7#b71 7#c7 or 7#d71 as the case may be1 shall be treated as having disposed1 captured1 or used such qualified carbon dioxide to the extent disposed1 captured1 or used by such other persons pursuant to such contractual arrangements4 7b7 ,applicable dollar amount2 additional equipment2 election 7#a7 ,applicable dollar amount ,for purposes of subsection 7a7-- 7,a7 ,in general ,the applicable dollar amount shall be an amount equal to-- 7i7 for taxable years beginning after #bjaf and before #bjbf1 the dollar amount established by linear interpolation between #ab4hc and #ce for each calendar year during such period1 and 7ii7 for taxable years beginning after #bjbe1 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 ,storage ,act1 for which additional carbon capture equipment is placed in service on or after the date of the enactment of such ,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 carbon capture equipment in service at such facility on the day before the date of the enactment of the ,carbon ,capture ,act1 and 7,b7 for purposes of paragraphs 7#c77;,a7 and 7#d77;,a7 of such subsection1 an amount equal to the excess 7if any7 of-- 7i7 the amount described in subparagraph 7,a77i71 over 7ii7 the amount described in subparagraph 7,a77ii74 7#c7 ,election ,for purposes of determining the carbon dioxide sequestration credit under this section1 a taxpayer may elect to have the dollar amount 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 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 ,act4 7c7 ,qualified carbon dioxide ,for purposes of this section3 7#a7 ,in general ,the term qualified carbon dioxide means carbon dioxide or other carbon oxides captured-- 7,a7 7i7 from an industrial source which would otherwise be released into the atmosphere as industrial emission of greenhouse gas1 or would otherwise lead to such release1 or 7ii7 directly from the ambient air1 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 ,for purposes of this section1 the term qualified facility means any industrial facility or direct air capture facility-- 7#a7 the construction of which begins before ,january #a1 #bjbd1 and-- 7,a7 the original planning and design for such facility includes installation of carbon capture equipment1 or 7,b7 the construction of carbon capture equipment with respect to such facility begins before such date1 and 7#b7 which captures-- 7,a7 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 or 7,b7 in the case of a facility not described in subparagraph 7,a71 not less than #ajj1jjj metric tons of qualified carbon dioxide during the taxable year4 7e7 ,special rules and other definitions ,for purposes of this section-- 7#a7 ,only carbon dioxide captured and secured 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 qualified carbon dioxide under subsection 7a7 such that the qualified 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 carbon capture equipment which is originally placed in service at a qualified facility before the date of the enactment of the ,carbon ,capture ,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 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 ,act1 or with regard to which an election has been made under subsection 7f77#b71 the person that owns the 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 at such time and in such 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 chemical conversion of such qualified carbon dioxide to a material or chemical compound in which such qualified carbon dioxide is securely stored1 or 7ii7 the use of such qualified carbon dioxide for any other purpose for which a commercial market exists 7other than use as a tertiary injectant in a qualified enhanced oil or natural gas recovery project71 as determined by the ,secretary4 7,b7 ,measurement ,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 7#h7 ,direct air capture facility ,for purposes of this section1 the term direct air capture facility means any facility which uses carbon capture equipment to capture carbon from the ambient air4 ,such a term does not include facilities capturing carbon dioxide that is deliberately released from naturally-occurring subsurface springs4 7#i7 ,inflation adjustment ,in the case of any taxable year beginning in a calendar year after #bjji1 there shall be substituted for the 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 7#a7 ,in general ,except as provided in paragraph 7#b71 in the case of any carbon capture equipment placed in service before the date of the enactment of the ,carbon ,capture ,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 7#b7 ,special rule for certain facilities not claiming prior credit ,in the case of any qualified facility-- 7,a7 which captures not less than #ajj1jjj metric tons of carbon dioxide during the taxable year1 7,b7 which is placed in service after ,december #ca1 #bjae1 and 7,c7 with respect to which no credit has been allowed under this section 7as in effect on the day before the date of the enactment of such ,act7 by any person for any taxable year beginning prior to the date of enactment of such ,act1 the taxpayer may elect to treat such qualified facility as placed in service on the date of enactment of such ,act4 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 ,act1 and 7#b7 determine whether a facility satisfies the requirements under subsection 7d77#a7 during such taxable year4 4 7b7 ,effective date ,except to the extent provided in section #de,q7f7 of such ,code1 as amended by this ,act1 the amendments made by this section shall apply to property placed in service on after the date of the enactment of this ,act4