End Polluter Welfare for Enhanced Oil Recovery Act of 2026

Plain-English Summary

This bill would change the federal tax code to set an end date for an existing tax credit that businesses can currently claim for capturing and storing carbon dioxide and other carbon-based gases. This tax credit — known as the "45Q credit" — was originally created to encourage companies to invest in technology that captures harmful emissions before they enter the atmosphere, either storing them underground or using them in industrial processes.

Under current law, the 45Q credit does not have a fixed expiration date for facilities that begin construction before a certain deadline. This bill would establish a specific cutoff date after which companies could no longer claim this credit, essentially limiting how long the incentive remains available. The bill was introduced in the House of Representatives and has been referred to the House Committee on Ways and Means, which oversees tax legislation.

This change would primarily affect energy companies, industrial manufacturers, and other businesses that use or plan to invest in carbon capture and storage technology. If passed, companies currently planning future projects based on the availability of this credit might need to reassess those investments. It could also affect workers in the carbon capture industry and communities where such facilities operate.

It's worth noting that the bill's full details — including what the specific end date would be — are not yet publicly available, as no official description has been provided. The bill is in its earliest stages and would need to pass through committee review and a full Congressional vote before becoming law.