,,ii #aaeth ,,congress #ast ,session ,s4 #aece ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,july #ab1 #bjag,ms4 ,heitkamp 7for herself1 ,mrs4 ,capito1 ,mr4 ,whitehouse1 ,mr4 ,barrasso1 ,mr4 ,kaine1 ,mr4 ,graham1 ,mr4 ,schatz1 ,mr4 ,blunt1 ,mr4 ,booker1 ,mr4 ,portman1 ,mr4 ,tester1 ,mr4 ,cochran1 ,mr4 ,casey1 ,ms4 ,klobuchar1 ,mr4 ,durbin1 ,mr4 ,franken1 ,mr4 ,brown1 ,mr4 ,warner1 ,mr4 ,donnelly1 ,mr4 ,manchin1 ,ms4 ,duckworth1 ,mr4 ,peters1 ,mr4 ,coons1 ,mr4 ,bennet1 and ,mr4 ,king7 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 improve1 expand1 and extend the credit for carbon dioxide sequestration4 #a4 ,short title ,this ,act may be cited as the ,furthering carbon capture1 ,utilization1 ,technology1 ,underground storage1 and ,reduced ,emissions ,act or the ,,future ,act4 #b4 ,enhancement of 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 oxide sequestration 7a7 ,general rule ,for purposes of section #ch1 the carbon oxide sequestration credit for any taxable year is an amount equal to the sum of-- 7#a7 #bj per metric ton of qualified carbon oxide 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 ,,future ,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 oxide 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 ,,future ,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 7f77#e71 7#c7 the applicable dollar amount 7as determined under subsection 7b77#a77 per metric ton of qualified carbon oxide 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 ,,future ,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 oxide 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 ,,future ,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 7f77#e74 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 #bjaf and ending before #bjbg-- 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 #bjbf-- 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 #bjbe 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 #bjbe 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 ,,future ,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 oxide 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 oxide 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 ,,future ,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 oxide 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 oxide 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 ,,future ,act4 7c7 ,qualified carbon oxide ,for purposes of this section-- 7#a7 ,in general ,the term qualified carbon oxide means-- 7,a7 any carbon dioxide which-- 7i7 is captured from an industrial source by carbon capture equipment which is originally placed in service before the date of the enactment of the ,,future ,act1 7ii7 would otherwise be released into the atmosphere as industrial emission of greenhouse gas or lead to such release1 and 7iii7 is measured at the source of capture and verified at the point of disposal1 injection1 or utilization1 7,b7 any carbon dioxide or other carbon oxide which-- 7i7 is captured from an industrial source by carbon capture equipment which is originally placed in service on or after the date of the enactment of the ,,future ,act1 7ii7 would otherwise be released into the atmosphere as industrial emission of greenhouse gas or lead to such release1 and 7iii7 is measured at the source of capture and verified at the point of disposal1 injection1 or utilization1 or 7,c7 in the case of a direct air capture facility1 any carbon dioxide which-- 7i7 is captured directly from the ambient air1 and 7ii7 is measured at the source of capture and verified at the point of disposal1 injection1 or utilization4 7#b7 ,recycled carbon oxide ,the term qualified carbon oxide includes the initial deposit of captured carbon oxide used as a tertiary injectant4 ,such term does not include carbon oxide 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 construction of carbon capture equipment begins before such date1 or 7,b7 the original planning and design for such facility includes installation of carbon capture equipment1 and 7#b7 which captures-- 7,a7 in the case of a facility which emits not more than #ejj1jjj metric tons of carbon oxide into the atmosphere during the taxable year1 not less than #be1jjj metric tons of qualified carbon oxide during the taxable year which is utilized in a manner described in subsection 7f77#e71 7,b7 in the case of an electricity generating facility which is not described in subparagraph 7,a71 not less than #ejj1jjj metric tons of qualified carbon oxide during the taxable year1 or 7,c7 in the case of a direct air capture facility or any facility not described in subparagraph 7,a7 or 7,b71 not less than #ajj1jjj metric tons of qualified carbon oxide during the taxable year4 7e7 ,definitions ,for purposes of this section-- 7#a7 ,direct air capture facility 7,a7 ,in general ,subject to subparagraph 7,b71 the term direct air capture facility means any facility which uses carbon capture equipment to capture carbon dioxide directly from the ambient air4 7,b7 ,exception ,the term direct air capture facility shall not include any facility which captures carbon dioxide-- 7i7 which is deliberately released from naturally occurring subsurface springs1 or 7ii7 using natural photosynthesis4 7#b7 ,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#c7 ,tertiary injectant ,the term tertiary injectant has the same meaning as when used within section #aic7;b77#a74 7f7 ,special rules 7#a7 ,only qualified carbon oxide 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 oxide 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 oxide under subsection 7a7 such that the qualified carbon oxide 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 ,credit attributable to taxpayer 7,a7 ,in general ,except as provided in 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 oxide captured using carbon capture equipment which is originally placed in service at a qualified facility before the date of the enactment of the ,,future ,act1 the person that captures and physically or contractually ensures the disposal1 utilization1 or use as a tertiary injectant of such qualified carbon oxide1 and 7ii7 in the case of qualified carbon oxide 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 ,,future ,act1 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 oxide4 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 oxide1 utilizes the qualified carbon oxide1 or uses the qualified carbon oxide as a tertiary injectant1 and 7ii7 shall not be allowable to the person described in subparagraph 7,a74 7#d7 ,recapture ,the ,secretary shall1 by regulations1 provide for recapturing the benefit of any credit allowable under subsection 7a7 with respect to any qualified carbon oxide which ceases to be captured1 disposed of1 or used as a tertiary injectant in a manner consistent with the requirements of this section4 7#e7 ,utilization of qualified carbon oxide 7,a7 ,in general ,for purposes of this section1 utilization of qualified carbon oxide means-- 7i7 the fixation of such qualified carbon oxide through photosynthesis or chemosynthesis1 such as through the growing of algae or bacteria1 7ii7 the chemical conversion of such qualified carbon oxide to a material or chemical compound in which such qualified carbon oxide is securely stored1 or 7iii7 the use of such qualified carbon oxide 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 oxide 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 qualified carbon oxide 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-- 7,i7 captured and permanently isolated from the atmosphere1 or 7,,ii7 displaced from being emitted into the atmosphere1 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 ,,future ,act1 except that product shall be substituted for fuel each place it appears in such subparagraph4 7#f7 ,election for applicable facilities 7,a7 ,in general ,for purposes of this section1 in the case of an applicable facility1 for any taxable year in which such facility captures not less than #ejj1jjj metric tons of qualified carbon oxide during the taxable year1 the person described in paragraph 7#c77;,a77ii7 may elect to have such facility1 and any carbon capture equipment placed in service at such facility1 deemed as having been placed in service on the date of the enactment of the ,,future ,act4 7,b7 ,applicable facility ,for purposes of this paragraph1 the term applicable facility means a qualified facility-- 7i7 which was placed in service before the date of the enactment of the ,,future ,act1 and 7ii7 for which no taxpayer claimed a credit under this section in regards to such facility for any taxable year ending before the date of the enactment of such ,act4 7#g7 ,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 7g7 ,application of section for certain carbon capture equipment ,in the case of any carbon capture equipment placed in service before the date of the enactment of the ,,future ,act1 the credit under this section shall apply with respect to qualified carbon oxide 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 that1 during the period beginning after ,october #c1 #bjjh1 a total of #ge1jjj1jjj metric tons of qualified carbon oxide have been taken into account in accordance with-- 7#a7 subsection 7a7 of this section1 as in effect on the day before the date of the enactment of the ,,future ,act1 and 7#b7 paragraphs 7#a7 and 7#b7 of subsection 7a7 of this section4 7h7 ,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 oxide captured by a taxpayer during the taxable year ending after the date of the enactment of the ,,future ,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