SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Accelerating Carbon Capture and 
Sequestration Act of 2008''.

SEC. 2. TAX CREDIT FOR CARBON DIOXIDE SEQUESTRATION.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to business credits) is 
amended by adding at the end the following new section:

``SEC. 45Q. CREDIT FOR CARBON DIOXIDE SEQUESTRATION.

    ``(a) General Rule.--For purposes of section 38, the carbon dioxide 
sequestration credit for any taxable year is an amount equal to the sum 
of--
            ``(1) $20 per metric ton of qualified carbon dioxide which 
        is--
                    ``(A) captured by the taxpayer at a qualified 
                facility, and
                    ``(B) disposed of by the taxpayer in secure 
                geological storage, and
            ``(2) $10 per metric ton of qualified carbon dioxide which 
        is--
                    ``(A) captured by the taxpayer at a qualified 
                facility, and
                    ``(B) used by the taxpayer as a tertiary injectant 
                in a qualified enhanced oil or natural gas recovery 
                project.
    ``(b) Qualified Carbon Dioxide.--For purposes of this section--
            ``(1) In general.--The term `qualified carbon dioxide' 
        means carbon dioxide captured from an industrial source which--
                    ``(A) would otherwise be released into the 
                atmosphere as industrial emission of greenhouse gas, 
                and
                    ``(B) is measured at the source of capture and 
                verified at the point of disposal or injection.
            ``(2) Recycled carbon dioxide.--The term `qualified carbon 
        dioxide' includes the initial deposit of captured carbon 
        dioxide used as a tertiary injectant. Such term does not 
        include carbon dioxide that is re-captured, recycled, and re-
        injected as part of the enhanced oil and natural gas recovery 
        process.
    ``(c) Qualified Facility.--For purposes of this section, the term 
`qualified facility' means any industrial facility--
            ``(1) which is owned by the taxpayer,
            ``(2) at which carbon capture equipment is placed in 
        service, and
            ``(3) which captures not less than 500,000 metric tons of 
        carbon dioxide during the taxable year.
    ``(d) Special Rules and Other Definitions.--For purposes of this 
section--
            ``(1) Only carbon dioxide captured and stored or used 
        within the united states taken into account.--The credit under 
        this section shall apply only with respect to qualified carbon 
        dioxide--
                    ``(A) the capture of which is within the United 
                States (within the meaning of section 638(1)) or a 
                possession of the United States (within the meaning of 
                section 638(2)), and
                    ``(B) which is stored in secure geological storage, 
                or used as a tertiary injectant in a qualified enhanced 
                oil or natural gas recovery project, located within the 
                United States (as so defined) or a possession of the 
                United States (as so defined).
            ``(2) Secure geological storage.--The Secretary, in 
        consultation with the Administrator of the Environmental 
        Protection Agency, shall establish regulations for determining 
        adequate security measures for the geological storage of carbon 
        dioxide under subsection (a)(1)(B) such that the carbon dioxide 
        does not escape into the atmosphere. Such term shall include 
        storage at deep saline formations and unminable coal seems 
        under such conditions as the Secretary may determine under such 
        regulations.
            ``(3) Tertiary injectant.--The term `tertiary injectant' 
        has the same meaning as when used within section 193(b)(1).
            ``(4) 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 43(c)(2), by 
        substituting `crude oil or natural gas' for `crude oil' in 
        subparagraph (A)(i) thereof.
            ``(5) Credit attributable to taxpayer.--Any credit under 
        this section shall be attributable to the person that captures 
        and physically or contractually ensures the disposal of or the 
        use as a tertiary injectant of the qualified carbon dioxide, 
        except to the extent provided in regulations prescribed by the 
        Secretary.
            ``(6) Recapture.--The Secretary shall, by regulations, 
        provide for recapturing the benefit of any credit allowable 
        under subsection (a) with respect to any qualified carbon 
        dioxide which ceases to be captured, disposed of, or used as a 
        tertiary injectant in a manner consistent with the requirements 
        of this section.
            ``(7) Inflation adjustment.--In the case of any taxable 
        year beginning in a calendar year after 2008, there shall be 
        substituted for each dollar amount contained in subsection (a) 
        an amount equal to the product of--
                    ``(A) such dollar amount, multiplied by
                    ``(B) the inflation adjustment factor for such 
                calendar year determined under section 43(b)(3)(B) for 
                such calendar year, determined by substituting `2007' 
                for `1990'.
    ``(e) Application of Section.--The credit under this section shall 
apply with respect to qualified carbon dioxide before the end of the 
calendar year in which the Secretary, in consultation with the 
Administrator of the Environmental Protection Agency, certifies that 
75,000,000 metric tons of qualified carbon dioxide have been captured 
and disposed of or used as a tertiary injectant.''.
    (b) Conforming Amendment.--Section 38(b) of the Internal Revenue 
Code of 1986 (relating to general business credit) is amended by 
striking ``plus'' at the end of paragraph (32), by striking the period 
at the end of paragraph (33) and inserting ``, plus'', and by adding at 
the end of following new paragraph:
            ``(34) the carbon dioxide sequestration credit determined 
        under section 45Q(a).''.
    (c) Clerical Amendment.--The table of sections for subpart B of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986 (relating to other credits) is amended by adding at the end the 
following new section:

``Sec. 4QO. Credit for carbon dioxide sequestration.''.
    (d) Effective Date.--The amendments made by this section shall 
apply carbon dioxide captured after the date of the enactment of this 
Act.
Accelerating Carbon Capture and Sequestration Act of 2008 - Amends the Internal Revenue Code to allow a business-related tax credit for the capture and sequestration of carbon dioxide which would otherwise be released into the atmosphere as a greenhouse gas emission.
A bill to amend the Internal Revenue Code of 1986 to allow a credit for the capture and sequestration of carbon dioxide from an industrial source.