I 

114TH CONGRESS 

2D SESSION H. R. 4622 

To amend the Internal Revenue Code of 1986 to improve and make 

permanent the credit for carbon dioxide sequestration. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 25, 2016 

Mr. CONAWAY (for himself, Mr. MCKINLEY, Mr. HARPER, Mr. TIPTON, Mrs. 

LUMMIS, Mr. CRAMER, Mr. JENKINS of West Virginia, Mr. VEASEY, Mr. 

BARR, Mr. MICHAEL F. DOYLE of Pennsylvania, Mr. BARTON, Mr. 

BUCSHON, Mr. PETERSON, Mr. MOOLENAAR, Mr. RODNEY DAVIS of Illinois, Mr. MURPHY of Pennsylvania, Mr. JOHNSON of Ohio, Mr. BOUSTANY, and Mr. HUIZENGA of Michigan) introduced the following bill; 

which was referred to the Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to improve 

and make permanent the credit for carbon dioxide sequestration. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Carbon Capture Act’’. 


smartinez on DSK4TPTVN1PROD with BILLS
2 

•HR 4622 IH

1 SEC. 2. CARBON DIOXIDE SEQUESTRATION CREDIT IM2 PROVED AND MADE PERMANENT. 

3 (a) CREDIT MADE PERMANENT.—Section 45Q of the 

4 Internal Revenue Code of 1986 is amended by striking 

5 subsection (e). 

6 (b) INCREASE IN CREDIT FOR NEW FACILITIES.— 

7 (1) IN GENERAL.—Section 45Q of such Code, 

8 as amended by subsection (a), is amended by redes9 ignating subsections (b), (c), and (d) as subsections 

10 (c), (d), and (e), respectively, and by inserting after 

11 subsection (a) the following new subsection: 

12 ‘‘(b) CREDIT RATES FOR NEW QUALIFIED FACILI13 TIES.— 

14 ‘‘(1) IN GENERAL.—In the case of a taxable 

15 year beginning in a calendar year after 2024 with 

16 respect to a qualified facility at which carbon cap17 ture equipment is originally placed in service after 

18 December 31, 2015— 

19 ‘‘(A) subsection (a)(1) shall be applied by 

20 substituting ‘$30’ for ‘$20’, and 

21 ‘‘(B) subsection (a)(2) shall be applied by 

22 substituting ‘$30’ for ‘$10’. 

23 ‘‘(2) PHASE-UP.—In the case of a qualified fa24 cility at which carbon capture equipment is origi25 nally placed in service during a calendar year after 


smartinez on DSK4TPTVN1PROD with BILLS
3 

•HR 4622 IH

1 2015 and before 2025 and any taxable year begin2 ning in such calendar year— 

3 ‘‘(A) subsection (a)(1) shall be applied by 

4 substituting for ‘$20’ the dollar amount with 

5 respect to each calendar year determined by 

6 ratably increasing such dollar amount annually 

7 from $21.85 with respect to calendar year 2015 

8 to $30 with respect to calendar year 2025, and 

9 ‘‘(B) subsection (a)(2) shall be applied by 

10 substituting for ‘$10’ the dollar amount with 

11 respect to each calendar year determined by 

12 ratably increasing such dollar amount annually 

13 from $10.92 with respect to calendar year 2015 

14 to $30 with respect to calendar year 2025. 

15 ‘‘(3) INFLATION ADJUSTMENT.—In the case of 

16 any taxable year beginning in a calendar year after 

17 2025 with respect to a qualified facility at which 

18 carbon capture equipment is originally placed in 

19 service after December 31, 2015, there shall be sub20 stituted for each $30 amount contained in para21 graph (1) an amount equal to the product of— 

22 ‘‘(A) such dollar amount, multiplied by 

23 ‘‘(B) the inflation adjustment factor for 

24 such calendar year determined under section 


smartinez on DSK4TPTVN1PROD with BILLS
4 

•HR 4622 IH

1 43(b)(3)(B) for such calendar year, determined 

2 by substituting ‘2024’ for ‘1990’.’’. 

3 (2) CONFORMING AMENDMENT.—Section 

4 45Q(e)(7) of such Code, as redesignated by para5 graph (1), is amended by inserting ‘‘with respect to 

6 a qualified facility at which carbon capture equip7 ment is originally placed in service before January 

8 1, 2016’’ after ‘‘2009’’. 

9 (c) ELECTION TO ALLOW CREDIT TO PERSON THAT

10 DISPOSES OF, OR USES AS A TERTIARY INJECTANT, CAR11 BON DIOXIDE.—Section 45Q(e)(5) of such Code, as redes12 ignated by subsection (b), is amended— 

13 (1) by striking ‘‘Any credit’’ and inserting the 

14 following: 

15 ‘‘(A) IN GENERAL.—Any credit’’, 

16 (2) by inserting ‘‘subparagraph (B) or’’ after 

17 ‘‘except to the extent provided in’’, and 

18 (3) by adding at the end the following new sub19 paragraph: 

20 ‘‘(B) ELECTION TO ALLOW CREDIT TO

21 PERSON THAT DISPOSES OF, OR USES AS TER22 TIARY INJECTANT, CARBON DIOXIDE.—If the 

23 person described in subparagraph (A) makes an 

24 election under this subparagraph (as such time 

25 and in such manner as the Secretary may preVerDate Sep 11 2014 23:42 Feb 26, 2016 Jkt 059200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H4622.IH H4622

smartinez on DSK4TPTVN1PROD with BILLS
5 

•HR 4622 IH

1 scribe), the credit determined under this sec2 tion— 

3 ‘‘(i) shall be allowable to the person 

4 that disposes of, or uses as a tertiary 

5 injectant, the carbon dioxide, and 

6 ‘‘(ii) shall not be allowable to the per7 son described in subparagraph (A).’’. 

8 (d) REDUCTION IN QUALIFIED FACILITY THRESH9 OLD.—Section 45Q(d)(3) of such Code, as redesignated 

10 by subsection (b), is amended by striking ‘‘500,000’’ and 

11 inserting ‘‘150,000’’. 

12 (e) EFFECTIVE DATES.— 

13 (1) CREDIT MADE PERMANENT.—The amend14 ment made by subsection (a) shall apply to calendar 

15 years beginning after 2015. 

16 (2) INCREASE IN CREDIT FOR NEW FACILI17 TIES.—The amendments made by subsection (b) 

18 shall apply to facilities at which carbon capture 

19 equipment is originally placed in service after De20 cember 31, 2015. 

21 (3) ELECTION TO ALLOW CREDIT TO PERSON

22 THAT DISPOSES OF, OR USES AS A TERTIARY

23 INJECTANT, CARBON DIOXIDE.—The amendments 

24 made by subsection (c) shall apply to taxable years 


smartinez on DSK4TPTVN1PROD with BILLS
6 

•HR 4622 IH

1 beginning after the date of the enactment of this 

2 Act. 

3 (4) REDUCTION IN QUALIFIED FACILITY

4 THRESHOLD.—The amendments made by subsection 

5 (d) shall apply to taxable years beginning after the 

6 date of the enactment of this Act. 

Æ 


smartinez on DSK4TPTVN1PROD with BILLS