,,ii  #aae? ,,congress  #a/ ,session    
,s4 #aece  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,july #ab1 #bjag,ms4   
,heitkamp 7= h]self1 ,mrs4 ,capito1 ,mr4
 ,:iteh\se1 ,mr4 ,b>rasso1 ,mr4 ,ka9e1  
,mr4 ,graham1 ,mr4 ,s*atz1 ,mr4 ,blunt1 
,mr4 ,book]1 ,mr4 ,portman1 ,mr4 ,te/]1 
,mr4 ,co*ran1 ,mr4 ,casey1 ,ms4         
,klobu*>1 ,mr4 ,durb91 ,mr4 ,frank51    
,mr4 ,br[n1 ,mr4 ,w>n]1 ,mr4 ,donnelly1 
,mr4 ,man*91 ,ms4 ,duckwor?1 ,mr4       
,pet]s1 ,mr4 ,coons1 ,mr4 ,b5net1 & ,mr4
 ,k+7 introduc$ ! foll[+ bill2 :i* 0    
read twice & ref]r$ to ! ,committee on  
,f9ance  ,a ,,bill  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to improve1 exp&1 
& ext5d ! cr$it = c>bon dioxide         
seque/ration4  #a4 ,%ort title ,?is ,act
 may be cit$ z ! ,fur!r+ c>bon capture1 
,utilization1 ,te*nology1 ,und]gr\nd    
/orage1 & ,r$uc$ ,emissions ,act or !   
,,future ,act4  #b4 ,enhancem5t ( c>bon 
dioxide seque/ration cr$it  7a7 ,9 g5]al
 ,section #de,q ( ! ,int]nal ,rev5ue    
,code ( #aihf is am5d$ to read z foll[s3

  #de,q4 ,cr$it = c>bon oxide           
seque/ration  7a7 ,g5]al rule ,=        
purposes ( section #ch1 ! c>bon oxide   
seque/ration cr$it = any taxable ye> is 
an am\nt equal to ! sum (--  7#a7 #bj p]
 metric ton ( qualifi$ c>bon oxide :i*  
is--  7,a7 captur$ by ! taxpay] us+     
c>bon capture equipm5t :i* is orig9ally 
plac$ 9 s]vice at a qualifi$ facility   
be=e ! date ( ! enactm5t ( ! ,,future   
,act1 &  7,b7 dispos$ ( by ! taxpay] 9  
secure geological /orage & n us$ by !   
taxpay] z describ$ 9 p>agraph 7#b77;,b71
  7#b7 #aj p] metric ton ( qualifi$     
c>bon oxide :i* is--  7,a7 captur$ by ! 
taxpay] us+ c>bon capture equipm5t :i*  
is orig9ally plac$ 9 s]vice at a        
qualifi$ facility be=e ! date ( !       
enactm5t ( ! ,,future ,act1 &  7,b7 7i7 
us$ by ! taxpay] z a t]ti>y injectant 9 
a qualifi$ enhanc$ oil or natural gas   
recov]y project & dispos$ ( by ! taxpay]
 9 secure geological /orage1 or  7ii7   
utiliz$ by ! taxpay] 9 a mann] describ$ 
9 subsection 7f77#e71  7#c7 ! applicable

 doll> am\nt 7z det]m9$ "u subsection   
7b77#a77 p] metric ton ( qualifi$ c>bon 
oxide :i* is--  7,a7 captur$ by !       
taxpay] us+ c>bon capture equipm5t :i*  
is orig9ally plac$ 9 s]vice at a        
qualifi$ facility on or aft] ! date ( ! 
enactm5t ( ! ,,future ,act1 dur+ !      
#ab-ye> p]iod beg9n+ on ! date !        
equipm5t 0 orig9ally plac$ 9 s]vice1 &  
7,b7 dispos$ ( by ! taxpay] 9 secure    
geological /orage & n us$ by ! taxpay] z
 describ$ 9 p>agraph 7#d77;,b71 &  7#d7 
! applicable doll> am\nt 7z det]m9$ "u  
subsection 7b77#a77 p] metric ton (     
qualifi$ c>bon oxide :i* is--  7,a7     
captur$ by ! taxpay] us+ c>bon capture  
equipm5t :i* is orig9ally plac$ 9 s]vice
 at a qualifi$ facility on or aft] !    
date ( ! enactm5t ( ! ,,future ,act1    
dur+ ! #ab-ye> p]iod beg9n+ on ! date ! 
equipm5t 0 orig9ally plac$ 9 s]vice1 &  
7,b7 7i7 us$ by ! taxpay] z a t]ti>y    
injectant 9 a qualifi$ enhanc$ oil or   
natural gas recov]y project & dispos$ ( 
by ! taxpay] 9 secure geological /orage1

 or  7ii7 utiliz$ by ! taxpay] 9 a mann]
 describ$ 9 subsection 7f77#e74  7b7    
,applicable doll> am\nt2 additional     
equipm5t2 election  7#a7 ,applicable    
doll> am\nt  7,a7 ,9 g5]al ,! applicable
 doll> am\nt %all be an am\nt equal to--
  7i7 = any taxable ye> beg9n+ 9 a      
cal5d> ye> aft] #bjaf & end+ be=e       
#bjbg--  7,i7 = purposes ( p>agraph 7#c7
 ( subsection 7a71 ! doll> am\nt        
e/abli%$ by l9e> int]polation betwe5    
#bb4ff & #ej = ea* cal5d> ye> dur+ su*  
p]iod1 &  7,,ii7 = purposes ( p>agraph  
7#d7 ( su* subsection1 ! doll> am\nt    
e/abli%$ by l9e> int]polation betwe5    
#ab4hc & #ce = ea* cal5d> ye> dur+ su*  
p]iod1 &  7ii7 = any taxable ye> beg9n+ 
9 a cal5d> ye> aft] #bjbf--  7,i7 =     
purposes ( p>agraph 7#c7 ( subsection   
7a71 an am\nt equal to ! product ( #ej &
 ! inflation adju/m5t factor = su*      
cal5d> ye> det]m9$ "u section           
#dc7;b77#c77;,b7 = su* cal5d> ye>1      
det]m9$ by sub/itut+ #bjbe = #aiij1 &   
7,,ii7 = purposes ( p>agraph 7#d7 ( su* 

subsection1 an am\nt equal to ! product 
( #ce & ! inflation adju/m5t factor =   
su* cal5d> ye> det]m9$ "u section       
#dc7;b77#c77;,b7 = su* cal5d> ye>1      
det]m9$ by sub/itut+ #bjbe = #aiij4     
7,b7 ,r\nd+ ,! applicable doll> am\nt   
det]m9$ "u subp>agraph 7,a7 %all be     
r\nd$ to ! ne>e/ c5t4  7#b7 ,in/allation
 ( additional c>bon capture equipm5t on 
exi/+ qualifi$ facility ,9 ! case ( a   
qualifi$ facility plac$ 9 s]vice be=e ! 
date ( ! enactm5t ( ! ,,future ,act1 =  
:i* additional c>bon capture equipm5t is
 plac$ 9 s]vice on or aft] ! date ( !   
enactm5t ( su* ,act1 ! am\nt ( qualifi$ 
c>bon oxide :i* is captur$ by ! taxpay] 
%all be equal to--  7,a7 = purposes (   
p>agraphs 7#a77;,a7 & 7#b77;,a7 (       
subsection 7a71 ! less] (--  7i7 ! total
 am\nt ( qualifi$ c>bon oxide captur$ at
 su* facility = ! taxable ye>1 or  7ii7 
! total am\nt ( ! c>bon dioxide capture 
capacity ( ! c>bon capture equipm5t 9   
s]vice at su* facility on ! day be=e !  
date ( ! enactm5t ( ! ,,future ,act1 &  

7,b7 = purposes ( p>agraphs 7#c77;,a7 & 
7#d77;,a7 ( su* subsection1 an am\nt 7n 
less ?an z]o7 equal to ! excess (--  7i7
 ! am\nt describ$ 9 clause 7i7 (        
subp>agraph 7,a71 ov]  7ii7 ! am\nt     
describ$ 9 clause 7ii7 ( su*            
subp>agraph4  7#c7 ,election ,= purposes
 ( det]m9+ ! c>bon oxide seque/ration   
cr$it "u ?is section1 a taxpay] may     
elect to h ! doll> am\nts applicable "u 
p>agraph 7#a7 or 7#b7 ( subsection 7a7  
apply 9 lieu ( ! doll> am\nts applicable
 "u p>agraph 7#c7 or 7#d7 ( su*         
subsection = ea* metric ton ( qualifi$  
c>bon oxide :i* is captur$ by ! taxpay] 
us+ c>bon capture equipm5t :i* is       
orig9ally plac$ 9 s]vice at a qualifi$  
facility on or aft] ! date ( ! enactm5t 
( ! ,,future ,act4  7c7 ,qualifi$ c>bon 
oxide ,= purposes ( ?is section--  7#a7 
,9 g5]al ,! t]m qualifi$ c>bon oxide    
means--  7,a7 any c>bon dioxide :i*--   
7i7 is captur$ f an indu/rial s\rce by  
c>bon capture equipm5t :i* is orig9ally 
plac$ 9 s]vice be=e ! date ( ! enactm5t 

( ! ,,future ,act1  7ii7 w\ld o!rwise be
 releas$ into ! atmosph]e z indu/rial   
emission ( gre5h\se gas or lead to su*  
release1 &  7iii7 is measur$ at ! s\rce 
( capture & v]ifi$ at ! po9t ( disposal1
 injection1 or utilization1  7,b7 any   
c>bon dioxide or o!r c>bon oxide :i*--  
7i7 is captur$ f an indu/rial s\rce by  
c>bon capture equipm5t :i* is orig9ally 
plac$ 9 s]vice on or aft] ! date ( !    
enactm5t ( ! ,,future ,act1  7ii7 w\ld  
o!rwise be releas$ into ! atmosph]e z   
indu/rial emission ( gre5h\se gas or    
lead to su* release1 &  7iii7 is measur$
 at ! s\rce ( capture & v]ifi$ at ! po9t
 ( disposal1 injection1 or utilization1 
or  7,c7 9 ! case ( a direct air capture
 facility1 any c>bon dioxide :i*--  7i7 
is captur$ directly f ! ambi5t air1 &   
7ii7 is measur$ at ! s\rce ( capture &  
v]ifi$ at ! po9t ( disposal1 injection1 
or utilization4  7#b7 ,recycl$ c>bon    
oxide ,! t]m qualifi$ c>bon oxide       
includes ! initial deposit ( captur$    
c>bon oxide us$ z a t]ti>y injectant4   

,su* t]m does n include c>bon oxide t is
 recaptur$1 recycl$1 & re-inject$ z "p (
 ! enhanc$ oil & natural gas recov]y    
process4  7d7 ,qualifi$ facility  ,=    
purposes ( ?is section1 ! t]m qualifi$  
facility means any indu/rial facility or
 direct air capture facility--  7#a7 !  
con/ruction ( :i* beg9s be=e ,janu>y #a1
 #bjbd1 &--  7,a7 con/ruction ( c>bon   
capture equipm5t beg9s be=e su* date1 or
  7,b7 ! orig9al plann+ & design = su*  
facility includes in/allation ( c>bon   
capture equipm5t1 &  7#b7 :i* captures--
  7,a7 9 ! case ( a facility :i* emits n
 m ?an #ejj1jjj metric tons ( c>bon     
oxide into ! atmosph]e dur+ ! taxable   
ye>1 n less ?an #be1jjj metric tons (   
qualifi$ c>bon oxide dur+ ! taxable ye> 
:i* is utiliz$ 9 a mann] describ$ 9     
subsection 7f77#e71  7,b7 9 ! case ( an 
electricity g5]at+ facility :i* is n    
describ$ 9 subp>agraph 7,a71 n less ?an 
#ejj1jjj metric tons ( qualifi$ c>bon   
oxide dur+ ! taxable ye>1 or  7,c7 9 !  
case ( a direct air capture facility or 

any facility n describ$ 9 subp>agraph   
7,a7 or 7,b71 n less ?an #ajj1jjj metric
 tons ( qualifi$ c>bon oxide dur+ !     
taxable ye>4  7e7 ,def9itions ,=        
purposes ( ?is section--  7#a7 ,direct  
air capture facility  7,a7 ,9 g5]al     
,subject to subp>agraph 7,b71 ! t]m     
direct air capture facility means any   
facility :i* uses c>bon capture equipm5t
 to capture c>bon dioxide directly f !  
ambi5t air4  7,b7 ,exception ,! t]m     
direct air capture facility %all n      
include any facility :i* captures c>bon 
dioxide--  7i7 :i* is delib]ately       
releas$ f naturally occurr+ subsurface  
spr+s1 or  7ii7 us+ natural             
photosyn!sis4  7#b7 ,qualifi$ enhanc$   
oil or natural gas recov]y project ,!   
t]m qualifi$ enhanc$ oil or natural gas 
recov]y project has ! mean+ giv5 ! t]m  
qualifi$ enhanc$ oil recov]y project by 
section #dc7;c77#b71 by sub/itut+ crude 
oil or natural gas = crude oil 9        
subp>agraph 7,a77i7 !re(4  7#c7 ,t]ti>y 
injectant ,! t]m t]ti>y injectant has ! 

same mean+ z :5 us$ )9 section          
#aic7;b77#a74  7f7 ,special rules  7#a7 
,only qualifi$ c>bon oxide captur$ &    
dispos$ ( or us$ )9 ! ,unit$ ,/ates tak5
 into acc\nt ,! cr$it "u ?is section    
%all apply only ) respect to qualifi$   
c>bon oxide ! capture & disposal1 use1  
or utilization ( :i* is )9--  7,a7 !    
,unit$ ,/ates 7)9 ! mean+ ( section     
#fch7a771 or  7,b7 a possession ( !     
,unit$ ,/ates 7)9 ! mean+ ( section     
#fch7b774  7#b7 ,secure geological      
/orage ,! ,secret>y1 9 consultation ) ! 
,adm9i/rator ( ! ,environm5tal          
,protection ,ag5cy1 ! ,secret>y (       
,en]gy1 & ! ,secret>y ( ! ,int]ior1 %all
 e/abli% regulations = det]m9+ adequate 
security measures = ! geological /orage 
( qualifi$ c>bon oxide "u subsection 7a7
 su* t ! qualifi$ c>bon oxide does n    
escape into ! atmosph]e4 ,su* t]m %all  
include /orage at deep sal9e =mations1  
oil & gas res]voirs1 & unm9able coal    
seams "u su* conditions z ! ,secret>y   
may det]m9e "u su* regulations4  7#c7   

,cr$it attributable to taxpay]  7,a7 ,9 
g5]al ,except z provid$ 9 subp>agraph   
7,b7 or 9 any regulations prescrib$ by !
 ,secret>y1 any cr$it "u ?is section    
%all be attributable to--  7i7 9 ! case 
( qualifi$ c>bon oxide captur$ us+ c>bon
 capture equipm5t :i* is orig9ally plac$
 9 s]vice at a qualifi$ facility be=e ! 
date ( ! enactm5t ( ! ,,future ,act1 !  
p]son t captures & physically or        
contractually ensures ! disposal1       
utilization1 or use z a t]ti>y injectant
 ( su* qualifi$ c>bon oxide1 &  7ii7 9 !
 case ( qualifi$ c>bon oxide captur$ us+
 c>bon capture equipm5t :i* is orig9ally
 plac$ 9 s]vice at a qualifi$ facility  
on or aft] ! date ( ! enactm5t ( !      
,,future ,act1 ! p]son t owns ! c>bon   
capture equipm5t & physically or        
contractually ensures ! capture &       
disposal1 utilization1 or use z a t]ti>y
 injectant ( su* qualifi$ c>bon oxide4  
7,b7 ,election ,if ! p]son describ$ 9   
subp>agraph 7,a7 makes an election "u   
?is subp>agraph 9 su* "t & mann] z !    

,secret>y may prescribe by regulations1 
! cr$it "u ?is section--  7i7 %all be   
all[able to ! p]son t disposes ( !      
qualifi$ c>bon oxide1 utilizes !        
qualifi$ c>bon oxide1 or uses ! qualifi$
 c>bon oxide z a t]ti>y injectant1 &    
7ii7 %all n be all[able to ! p]son      
describ$ 9 subp>agraph 7,a74  7#d7      
,recapture ,! ,secret>y %all1 by        
regulations1 provide = recaptur+ !      
b5efit ( any cr$it all[able "u          
subsection 7a7 ) respect to any qualifi$
 c>bon oxide :i* ceases to be captur$1  
dispos$ (1 or us$ z a t]ti>y injectant 9
 a mann] consi/5t ) ! requirem5ts ( ?is 
section4  7#e7 ,utilization ( qualifi$  
c>bon oxide  7,a7 ,9 g5]al ,= purposes (
 ?is section1 utilization ( qualifi$    
c>bon oxide means--  7i7 ! fixation (   
su* qualifi$ c>bon oxide ?r\gh          
photosyn!sis or *emosyn!sis1 su* z ?r\gh
 ! gr[+ ( algae or bact]ia1  7ii7 !     
*emical conv]sion ( su* qualifi$ c>bon  
oxide to a mat]ial or *emical comp\nd 9 
:i* su* qualifi$ c>bon oxide is securely

 /or$1 or  7iii7 ! use ( su* qualifi$   
c>bon oxide = any o!r purpose = :i* a   
comm]cial m>ket exi/s 7) ! exception (  
use z a t]ti>y injectant 9 a qualifi$   
enhanc$ oil or natural gas recov]y      
project71 z det]m9$ by ! ,secret>y4     
7,b7 ,measurem5t  7i7 ,9 g5]al ,=       
purposes ( det]m9+ ! am\nt ( qualifi$   
c>bon oxide utiliz$ by ! taxpay] "u     
p>agraph 7#b77;,b77ii7 or 7#d77;,b77ii7 
( subsection 7a71 su* am\nt %all be     
equal to ! metric tons ( qualifi$ c>bon 
oxide :i* ! taxpay] demon/rates1 bas$ ^u
 an analysis ( lifecycle gre5h\se gas   
emissions & subject to su* requirem5ts z
 ! ,secret>y1 9 consultation ) !        
,secret>y ( ,en]gy & ! ,adm9i/rator ( ! 
,environm5tal ,protection ,ag5cy1       
det]m9es appropriate1 7--  7,i7 captur$ 
& p]man5tly isolat$ f ! atmosph]e1 or   
7,,ii7 displac$ f be+ emitt$ into !     
atmosph]e1  ?r\gh use ( a process       
describ$ 9 subp>agraph 7,a74  7ii7      
,lifecycle gre5h\se gas emissions ,=    
purposes ( clause 7i71 ! t]m lifecycle  

gre5h\se gas emissions has ! same mean+ 
giv5 su* t]m "u subp>agraph 7,h7 (      
section #baa7o77#a7 ( ! ,clean ,air ,act
 7#db ,u4,s4,c4 #gede7o77#a771 z 9      
effect on ! date ( ! enactm5t ( !       
,,future ,act1 except t product %all be 
sub/itut$ = fuel ea* place x appe>s 9   
su* subp>agraph4  7#f7 ,election =      
applicable facilities  7,a7 ,9 g5]al ,= 
purposes ( ?is section1 9 ! case ( an   
applicable facility1 = any taxable ye> 9
 :i* su* facility captures n less ?an   
#ejj1jjj metric tons ( qualifi$ c>bon   
oxide dur+ ! taxable ye>1 ! p]son       
describ$ 9 p>agraph 7#c77;,a77ii7 may   
elect to h su* facility1 & any c>bon    
capture equipm5t plac$ 9 s]vice at su*  
facility1 deem$ z hav+ be5 plac$ 9      
s]vice on ! date ( ! enactm5t ( !       
,,future ,act4  7,b7 ,applicable        
facility ,= purposes ( ?is p>agraph1 !  
t]m applicable facility means a qualifi$
 facility--  7i7 :i* 0 plac$ 9 s]vice   
be=e ! date ( ! enactm5t ( ! ,,future   
,act1 &  7ii7 = :i* no taxpay] claim$ a 

cr$it "u ?is section 9 reg>ds to su*    
facility = any taxable ye> end+ be=e !  
date ( ! enactm5t ( su* ,act4  7#g7     
,inflation adju/m5t ,9 ! case ( any     
taxable ye> beg9n+ 9 a cal5d> ye> aft]  
#bjji1 !re %all be sub/itut$ = ea* doll>
 am\nt conta9$ 9 p>agraphs 7#a7 & 7#b7 (
 subsection 7a7 an am\nt equal to !     
product (--  7,a7 su* doll> am\nt1      
multipli$ by  7,b7 ! inflation adju/m5t 
factor = su* cal5d> ye> det]m9$ "u      
section #dc7;b77#c77;,b7 = su* cal5d>   
ye>1 det]m9$ by sub/itut+ #bjjh = #aiij4
  7g7 ,application ( section = c]ta9    
c>bon capture equipm5t ,9 ! case ( any  
c>bon capture equipm5t plac$ 9 s]vice   
be=e ! date ( ! enactm5t ( ! ,,future   
,act1 ! cr$it "u ?is section %all apply 
) respect to qualifi$ c>bon oxide       
captur$ us+ su* equipm5t be=e ! end ( ! 
cal5d> ye> 9 :i* ! ,secret>y1 9         
consultation ) ! ,adm9i/rator ( !       
,environm5tal ,protection ,ag5cy1       
c]tifies t1 dur+ ! p]iod beg9n+ aft]    
,octob] #c1 #bjjh1 a total ( #ge1jjj1jjj

 metric tons ( qualifi$ c>bon oxide h   
be5 tak5 into acc\nt 9 accordance )--   
7#a7 subsection 7a7 ( ?is section1 z 9  
effect on ! day be=e ! date ( ! enactm5t
 ( ! ,,future ,act1 &  7#b7 p>agraphs   
7#a7 & 7#b7 ( subsection 7a7 ( ?is      
section4  7h7 ,regulations ,! ,secret>y 
may prescribe su* regulations & o!r     
guidance z may be necess>y or           
appropriate to c>ry out ?is section1    
includ+ regulations or o!r guidance to--
  7#a7 ensure prop] allocation "u       
subsection 7a7 = qualifi$ c>bon oxide   
captur$ by a taxpay] dur+ ! taxable ye> 
end+ aft] ! date ( ! enactm5t ( !       
,,future ,act1 &  7#b7 det]m9e :e!r a   
facility satisfies ! requirem5ts "u     
subsection 7d77#a7 dur+ su* taxable ye>4
  4  7b7 ,effective date ,! am5dm5ts    
made by ?is section %all take effect on 
! date ( ! enactm5t ( ?is ,act4