II 

118TH CONGRESS 

2D SESSION S. 5369 

To amend the Internal Revenue Code of 1986 to establish a technologyneutral tax credit for increased investment in next-generation carbon 

dioxide removal technologies. 

IN THE SENATE OF THE UNITED STATES 

NOVEMBER 21, 2024 

Mr. BENNET (for himself and Ms. MURKOWSKI) introduced the following bill; 

which was read twice and referred to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to establish 

a technology-neutral tax credit for increased investment 

in next-generation carbon dioxide removal technologies. 

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 Dioxide Re5 moval Investment Act’’. 

6 SEC. 2. ESTABLISHMENT OF TECHNOLOGY-NEUTRAL CRED7 IT FOR CARBON DIOXIDE REMOVAL. 

8 (a) IN GENERAL.—Subpart D of part IV of sub9 chapter A of chapter 1 of the Internal Revenue Code of 


kjohnson on DSK7ZCZBW3PROD with $$_JOB
2 

•S 5369 IS

1 1986 is amended by inserting after section 45AA the fol2 lowing new section: 

3 ‘‘SEC. 45BB. TECHNOLOGY-NEUTRAL CREDIT FOR CARBON 

4 DIOXIDE REMOVAL. 

5 ‘‘(a) IN GENERAL.—For purposes of section 38, the 

6 carbon dioxide removal credit for any taxable year is an 

7 amount equal to the applicable amount per metric tons 

8 of net carbon dioxide removal (as determined pursuant to 

9 subsection (e)) achieved by a qualifying carbon dioxide re10 moval project during the 12-year period beginning on the 

11 date such project was originally placed in service. 

12 ‘‘(b) APPLICABLE AMOUNT.— 

13 ‘‘(1) IN GENERAL.—For purposes of subsection 

14 (a), the applicable amount shall be— 

15 ‘‘(A) in the case of a qualifying carbon di16 oxide removal project which uses installed car17 bon capture equipment to capture point-source 

18 carbon dioxide originating from the combustion 

19 or processing of biomass feedstocks, $110, and 

20 ‘‘(B) in the case of a qualifying carbon di21 oxide removal project which is not described in 

22 subparagraph (A), $250. 

23 ‘‘(2) INFLATION ADJUSTMENT.— 

24 ‘‘(A) IN GENERAL.—In the case of any 

25 taxable year beginning in a calendar year after 


kjohnson on DSK7ZCZBW3PROD with $$_JOB
3 

•S 5369 IS

1 2025, the dollar amounts in paragraph (1) shall 

2 each be adjusted by multiplying such amount 

3 by the inflation adjustment factor for the cal4 endar year in which the carbon dioxide removal 

5 occurs. 

6 ‘‘(B) ANNUAL COMPUTATION.—The Sec7 retary shall, not later than April 1 of each cal8 endar year, determine and publish in the Fed9 eral Register the inflation adjustment factor for 

10 such calendar year in accordance with this sub11 section. 

12 ‘‘(C) INFLATION ADJUSTMENT FACTOR.— 

13 The term ‘inflation adjustment factor’ has the 

14 same meaning given such term under section 

15 45Y(c)(3), except that such section shall be ap16 plied by substituting ‘calendar year 2024’ for 

17 ‘calendar year 1992’. 

18 ‘‘(D) ROUNDING RULE.—If any amount as 

19 increased under subparagraph (A) is not a mul20 tiple of $1, such amount shall be rounded to the 

21 nearest multiple of $1. 

22 ‘‘(c) DEFINITIONS.—In this section— 

23 ‘‘(1) CARBON DIOXIDE EQUIVALENT.—The 

24 term ‘carbon dioxide equivalent’ means with respect 

25 to a greenhouse gas, the quantity of such gas that 


kjohnson on DSK7ZCZBW3PROD with $$_JOB
4 

•S 5369 IS

1 has a global warming potential equivalent to 1 met2 ric ton of carbon dioxide. 

3 ‘‘(2) CARBON DIOXIDE REMOVAL.—The term 

4 ‘carbon dioxide removal’ means the removal of car5 bon dioxide from the atmosphere through— 

6 ‘‘(A) the capture of carbon dioxide from 

7 the ambient air or upper hydrosphere, and 

8 ‘‘(B) the storage of such carbon dioxide. 

9 ‘‘(3) NET CARBON DIOXIDE REMOVAL.—The 

10 term ‘net carbon dioxide removal’ means carbon di11 oxide removal, net of any associated greenhouse gas 

12 emissions (as measured in metric tons of carbon di13 oxide equivalent on a lifecycle basis). 

14 ‘‘(4) QUALIFYING CARBON DIOXIDE REMOVAL

15 APPROACH.— 

16 ‘‘(A) IN GENERAL.—The term ‘qualifying 

17 carbon dioxide removal approach’ means, with 

18 respect to any qualifying carbon dioxide re19 moval project, a set of similar technologies— 

20 ‘‘(i) which achieve carbon dioxide re21 moval through— 

22 ‘‘(I) direct air capture and stor23 age, 

24 ‘‘(II) enhanced carbon min25 eralization and rock weathering, 


kjohnson on DSK7ZCZBW3PROD with $$_JOB
5 

•S 5369 IS

1 ‘‘(III) terrestrial biomass-based 

2 carbon dioxide removal, 

3 ‘‘(IV) marine-based carbon diox4 ide removal, or 

5 ‘‘(V) any other means, and 

6 ‘‘(ii) which satisfy each of the fol7 lowing criteria (as determined by the Sec8 retary, in consultation with the Secretary 

9 of Energy and, as deemed necessary, the 

10 head of any other relevant Federal agen11 cy): 

12 ‘‘(I) Expected to provide net car13 bon dioxide removal based on project14 level lifecycle analysis, as described in 

15 subsection (e)(2). 

16 ‘‘(II) Has a high likelihood, 

17 based on scientific understanding, of 

18 storing the captured carbon dioxide 

19 for at least 1,000 years, including 

20 through geologic storage, utilization, 

21 or other means. 

22 ‘‘(III) Demonstrates the ability 

23 to quantify net carbon dioxide re24 moval, within a range of plus or 

25 minus 20 percent with a 95 percent 


kjohnson on DSK7ZCZBW3PROD with $$_JOB
6 

•S 5369 IS

1 confidence interval based on public 

2 demonstrations and field trials. 

3 ‘‘(B) TERRESTRIAL BIOMASS-BASED CAR4 BON DIOXIDE REMOVAL.— 

5 ‘‘(i) IN GENERAL.—In the case of any 

6 approach which uses terrestrial biomass to 

7 capture carbon dioxide, such approach 

8 shall use eligible biomass feedstocks. 

9 ‘‘(ii) ELIGIBLE BIOMASS FEED10 STOCK.—For purposes of this subpara11 graph, the term ‘eligible biomass feedstock’ 

12 means a feedstock which is derived from— 

13 ‘‘(I) agricultural wastes and resi14 dues from land actively cultivated be15 fore the date of enactment of this sec16 tion, provided that— 

17 ‘‘(aa) there is not less than 

18 a 50 percent retention of resi19 dues, or 

20 ‘‘(bb) an alternate retention 

21 rate or best practice (as certified 

22 under clause (iii)(III)(aa)) is 

23 achieved, 

24 ‘‘(II) non-invasive organic mate25 rial grown on brownfield sites or 


kjohnson on DSK7ZCZBW3PROD with $$_JOB
7 

•S 5369 IS

1 abandoned mine sites, including or2 ganic material grown exclusively for 

3 purposes of being used by a qualifying 

4 carbon dioxide removal project, 

5 ‘‘(III) algae or other aquatic pho6 tosynthesizing organisms, 

7 ‘‘(IV) food waste, 

8 ‘‘(V) removal of invasive plant 

9 species, 

10 ‘‘(VI) other wastes and residues 

11 derived from— 

12 ‘‘(aa) landscape or right-of13 way trimming, 

14 ‘‘(bb) biomass removed for 

15 wildfire hazard reduction within 

16 200 feet of structures, 

17 ‘‘(cc) wood and paper mill 

18 waste, or 

19 ‘‘(dd) downed wood from ex20 treme weather events, or 

21 ‘‘(VII) any other source which is 

22 certified pursuant to clause 

23 (iii)(III)(bb). 

24 ‘‘(iii) STUDY AND CERTIFICATION.— 


kjohnson on DSK7ZCZBW3PROD with $$_JOB
8 

•S 5369 IS

1 ‘‘(I) STUDY.—Not later than 1 

2 year after the date of enactment of 

3 this section, the National Academies 

4 of Sciences, Engineering, and Medi5 cine, in consultation with the Sec6 retary of Energy and the Secretary of 

7 Agriculture, shall complete 2 separate 

8 studies with respect to the following: 

9 ‘‘(aa) For purposes of clause 

10 (ii)(I)(bb), recommend adequate 

11 thresholds for residue retention 

12 rates and other best practices for 

13 various crops and environmental 

14 conditions, with the goal of main15 taining soil organic carbon, soil 

16 health, and biodiversity. 

17 ‘‘(bb) For purposes of clause 

18 (ii)(VII), evaluate the suitability 

19 as additional sources for eligible 

20 biomass feedstocks of— 

21 ‘‘(AA) biomass grown 

22 on marginal lands that have 

23 been or are under intensive 

24 cultivation, and 


kjohnson on DSK7ZCZBW3PROD with $$_JOB
9 

•S 5369 IS

1 ‘‘(BB) forest residues 

2 (such as small diameter 

3 thinning, limbs, and bark) 

4 related to wildfire hazard re5 duction or ecological forest 

6 management with no alter7 native options for valoriza8 tion. 

9 ‘‘(II) FEEDSTOCK STUDY.—For 

10 purposes of the study described in 

11 subclause (I)(bb), such study shall— 

12 ‘‘(aa) assess— 

13 ‘‘(AA) the potential risk 

14 of the feedstocks described 

15 in such subclause displacing 

16 food crop production, de17 creasing food crop yield, dis18 placing the use of forest res19 idues for durable products, 

20 and other direct and indirect 

21 land-use impacts, 

22 ‘‘(BB) the impact of 

23 use of such feedstocks on 

24 forest and agricultural soils, 

25 including impacts on erosion 


kjohnson on DSK7ZCZBW3PROD with $$_JOB
10 

•S 5369 IS

1 and carbon and nutrient cy2 cling, and 

3 ‘‘(CC) the impact of 

4 use of such feedstocks on 

5 biodiversity, and 

6 ‘‘(bb) provide guidance for 

7 robust lifecycle assessment of 

8 such feedstocks. 

9 ‘‘(III) CERTIFICATION.—Fol10 lowing the completion of each study 

11 described in subclause (I), the Sec12 retary of Energy, in consultation with 

13 the Secretary of Agriculture, shall, 

14 based on the recommendations or 

15 evaluations of such study, certify— 

16 ‘‘(aa) for purposes of clause 

17 (ii)(I)(bb), any alternate reten18 tion rates or best practices, and 

19 ‘‘(bb) for purposes of clause 

20 (ii)(VII), any additional sources 

21 for eligible biomass feedstocks. 

22 ‘‘(C) MARINE-BASED CARBON DIOXIDE RE23 MOVAL.— 

24 ‘‘(i) IN GENERAL.—In the case of any 

25 approach which uses the physical, chemVerDate Sep 11 2014 22:34 Dec 04, 2024 Jkt 059200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S5369.IS S5369

kjohnson on DSK7ZCZBW3PROD with $$_JOB
11 

•S 5369 IS

1 ical, or biological properties of the ocean to 

2 achieve carbon dioxide removal, such ap3 proach shall use a certified marine carbon 

4 dioxide removal approach. 

5 ‘‘(ii) CERTIFIED MARINE CARBON DI6 OXIDE REMOVAL APPROACH.—For pur7 poses of this subparagraph, the term ‘cer8 tified marine carbon dioxide removal ap9 proach’ means an approach which— 

10 ‘‘(I) meets the standards estab11 lished under clause (iii), and 

12 ‘‘(II) is certified under clause 

13 (iv). 

14 ‘‘(iii) STANDARDS.— 

15 ‘‘(I) IN GENERAL.—Not later 

16 than 1 year after the date of enact17 ment of this section, the Adminis18 trator of the National Oceanic and 

19 Atmospheric Administration, in con20 sultation with the Administrator of 

21 the Environmental Protection Agency 

22 and the Director of the Bureau of 

23 Ocean Energy Management, shall es24 tablish science-based environmental 

25 safety standards which apply to all 


kjohnson on DSK7ZCZBW3PROD with $$_JOB
12 

•S 5369 IS

1 qualifying carbon dioxide removal ap2 proaches which use the physical, 

3 chemical, or biological properties of 

4 the ocean to achieve carbon dioxide 

5 removal, with such standards as will 

6 ensure that an approach is not likely 

7 to have significant adverse environ8 mental impact, which shall include ac9 counting for— 

10 ‘‘(aa) the positive and nega11 tive environmental impacts of 

12 such approach (including at-site 

13 deployment impacts and up14 stream and downstream im15 pacts), 

16 ‘‘(bb) the level of certainty 

17 with respect to the type and 

18 magnitude of such impacts, and 

19 ‘‘(cc) the quantity and qual20 ity of the body of research re21 lated to such impacts. 

22 ‘‘(II) REVERSAL OF NEGATIVE

23 ENVIRONMENTAL IMPACTS CAUSED BY

24 CLIMATE CHANGE.—For purposes of 

25 subclause (I), positive environmental 


kjohnson on DSK7ZCZBW3PROD with $$_JOB
13 

•S 5369 IS

1 impacts of any qualifying carbon diox2 ide removal approach shall include 

3 any local reversal of negative environ4 mental impacts caused by climate 

5 change. 

6 ‘‘(III) REEVALUATION.—Not 

7 later than 3 years after the establish8 ment of the standards under sub9 clause (I), and every 3 years there10 after, the Administrator of the Na11 tional Oceanic and Atmospheric Ad12 ministration, in consultation with the 

13 Administrator of the Environmental 

14 Protection Agency and the Director of 

15 the Bureau of Ocean Energy Manage16 ment, shall review such standards 

17 and, pursuant to the requirements 

18 under such subclause, update such 

19 standards as necessary. 

20 ‘‘(iv) CERTIFICATION.—Not later than 

21 1 year after the date of enactment of this 

22 section and every 2 years thereafter, the 

23 Administrator of the National Oceanic and 

24 Atmospheric Administration, in consulta25 tion with the Administrator of the EnviVerDate Sep 11 2014 22:34 Dec 04, 2024 Jkt 059200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6201 E:\BILLS\S5369.IS S5369

kjohnson on DSK7ZCZBW3PROD with $$_JOB
14 

•S 5369 IS

1 ronmental Protection Agency and the Di2 rector of the Bureau of Ocean Energy 

3 Management, shall certify any approach 

4 which satisfies the standards established 

5 under clause (iii). 

6 ‘‘(5) QUALIFYING CARBON DIOXIDE REMOVAL

7 PROJECT.—The term ‘qualifying carbon dioxide re8 moval project’ means a project— 

9 ‘‘(A) which— 

10 ‘‘(i) is owned by the taxpayer, 

11 ‘‘(ii) is engaged in carbon dioxide re12 moval through use of a qualifying carbon 

13 dioxide removal approach, and 

14 ‘‘(iii) is placed in service at an estab15 lished location or set of locations, and 

16 ‘‘(B) the construction of which begins be17 fore January 1, 2035. 

18 ‘‘(d) SELECTION OF QUALIFYING CARBON DIOXIDE

19 REMOVAL APPROACHES.— 

20 ‘‘(1) IN GENERAL.—Not later than 1 year after 

21 date of enactment of this section, the Secretary, in 

22 consultation with the Secretary of Energy, shall es23 tablish a selection process to determine qualifying 

24 carbon dioxide removal approaches pursuant to the 

25 requirements in subsection (c)(4). 


kjohnson on DSK7ZCZBW3PROD with $$_JOB
15 

•S 5369 IS

1 ‘‘(2) INITIAL LIST.—Not later than 18 months 

2 after date of enactment of this section, the Sec3 retary, in consultation with the Secretary of Energy, 

4 shall, pursuant to the process described in para5 graph (1), compile and publish an initial list of 

6 qualifying carbon dioxide removal approaches ac7 cording to requirements in subsection (c)(4). 

8 ‘‘(3) UPDATE.—Not later than 1 year after the 

9 publication of the list described in paragraph (2) 

10 and annually thereafter, the Secretary, in consulta11 tion with the Secretary of Energy, shall, pursuant to 

12 the process described in paragraph (1), compile and 

13 publish any additional qualifying carbon dioxide re14 moval approaches according to requirements in sub15 section (c)(4). 

16 ‘‘(e) DETERMINATION OF AMOUNT OF NET CARBON

17 DIOXIDE REMOVAL.— 

18 ‘‘(1) IN GENERAL.—Not later than 1 year after 

19 date of enactment of this section, the Secretary, in 

20 consultation with the Secretary of Energy and the 

21 Administrator of the Environmental Protection 

22 Agency, shall establish a process for taxpayers to de23 termine and publicly report net carbon dioxide re24 moval through a qualifying carbon dioxide removal 

25 project, as determined based on— 


kjohnson on DSK7ZCZBW3PROD with $$_JOB
16 

•S 5369 IS

1 ‘‘(A) project-level greenhouse gas lifecycle 

2 analysis, and 

3 ‘‘(B) project-level monitoring, reporting, 

4 and verification. 

5 ‘‘(2) LIFECYCLE ANALYSIS.—For purposes of 

6 paragraph (1)(A), the project-level greenhouse gas 

7 lifecycle analysis shall— 

8 ‘‘(A) be based on protocols which are sub9 ject to such requirements as are determined by 

10 the Secretary, in consultation with the Sec11 retary of Energy and Administrator of the En12 vironmental Protection Agency, to be appro13 priate, 

14 ‘‘(B) include all processes and activities as15 sociated with the capture and storage of carbon 

16 dioxide, including— 

17 ‘‘(i) any mass and energy inputs and 

18 outputs from raw materials, including bio19 mass feedstocks, manufacture, transport, 

20 storage, sale, use and disposal, 

21 ‘‘(ii) land use change and other eco22 system perturbations, and 

23 ‘‘(iii) long-term retention of carbon di24 oxide, 


kjohnson on DSK7ZCZBW3PROD with $$_JOB
17 

•S 5369 IS

1 ‘‘(C) calculate net carbon dioxide removal, 

2 including accounting for uncertainty associated 

3 with the estimate of net carbon dioxide removal, 

4 and 

5 ‘‘(D) only exclude any process from such 

6 analysis if such process does not significantly 

7 change the outcome of such analysis, with such 

8 exclusion to be noted and justified. 

9 ‘‘(3) MONITORING, REPORTING, AND

10 VERIFICATION.—For purposes of paragraph (1)(B), 

11 the project-level monitoring, reporting, and 

12 verification shall— 

13 ‘‘(A) be based on protocols which are sub14 ject to such requirements as are determined by 

15 the Secretary, in consultation with the Sec16 retary of Energy and the Administrator of the 

17 Environmental Protection Agency, to be appro18 priate, 

19 ‘‘(B) include the use of independent third20 party verifiers (as certified by the Secretary), 

21 and 

22 ‘‘(C) quantify uncertainty associated with 

23 measurements and the resulting estimate of net 

24 carbon dioxide removal. 


kjohnson on DSK7ZCZBW3PROD with $$_JOB
18 

•S 5369 IS

1 ‘‘(4) GOALS.—The process established under 

2 paragraph (1) shall seek to— 

3 ‘‘(A) to the greatest extent possible, iden4 tify best available tools, models, or default val5 ues for embodied emissions in order to facilitate 

6 consistency and comparability across qualified 

7 carbon dioxide removal approaches with respect 

8 to— 

9 ‘‘(i) project-level greenhouse gas 

10 lifecycle analysis, 

11 ‘‘(ii) project-level monitoring, report12 ing, and verification, and 

13 ‘‘(iii) determination of net carbon di14 oxide removal, 

15 ‘‘(B) include reporting requirements which 

16 facilitate transparency and evaluation of the net 

17 carbon dioxide removal claimed by the taxpayer, 

18 and 

19 ‘‘(C) take into account best practices from 

20 other carbon dioxide removal accounting pro21 grams in order to minimize inefficiencies and 

22 conflicting procedures. 

23 ‘‘(5) REVIEW.— 

24 ‘‘(A) IN GENERAL.—Not later than 3 years 

25 after date of enactment of this section, and 


kjohnson on DSK7ZCZBW3PROD with $$_JOB
19 

•S 5369 IS

1 every 3 years thereafter, the Secretary, in con2 sultation with the Secretary of Energy and the 

3 Administrator of the Environmental Protection 

4 Agency— 

5 ‘‘(i) shall conduct an panel-based re6 view by external experts (which may in7 clude representatives from government, 

8 academia, civil society, and the private sec9 tor) of the process established under para10 graph (1) to improve the requirements for 

11 greenhouse gas lifecycle analysis and moni12 toring, reporting, and verification based on 

13 the best available science at the time of 

14 such review, and 

15 ‘‘(ii) based on the review described in 

16 clause (i), may adjust any requirements 

17 applicable under this subsection. 

18 ‘‘(B) APPLICATION OF UPDATED REQUIRE19 MENTS.—Any adjustment under subparagraph 

20 (A)(ii) with respect to determination of net car21 bon dioxide removal shall only apply to taxable 

22 years beginning after the date of such adjust23 ment. 

24 ‘‘(f) SPECIAL RULES.— 


kjohnson on DSK7ZCZBW3PROD with $$_JOB
20 

•S 5369 IS

1 ‘‘(1) ONLY CARBON DIOXIDE REMOVAL WITHIN

2 THE UNITED STATES TAKEN INTO ACCOUNT.—The 

3 credit under this section shall apply only with re4 spect to carbon dioxide removal which is within— 

5 ‘‘(A) the United States (within the mean6 ing of section 638(1)), 

7 ‘‘(B) a possession of the United States 

8 (within the meaning of section 638(2)), or 

9 ‘‘(C) any marine environment which is sub10 ject to regulation by the United States. 

11 ‘‘(2) OWNERSHIP INTERESTS.—In the case of a 

12 qualifying carbon dioxide removal project in which 

13 more than 1 person has an ownership interest, ex14 cept to the extent provided in regulations prescribed 

15 by the Secretary, net carbon dioxide removal 

16 achieved by such project shall be allocated among 

17 such persons in proportion to their respective owner18 ship interests with respect to the gross net carbon 

19 dioxide removal from such project. 

20 ‘‘(3) COORDINATION WITH OTHER CREDITS.— 

21 ‘‘(A) CARBON OXIDE SEQUESTRATION

22 CREDIT.—No credit shall be allowed under this 

23 section with respect to any qualifying carbon di24 oxide removal project for any taxable year for 


kjohnson on DSK7ZCZBW3PROD with $$_JOB
21 

•S 5369 IS

1 which a credit determined under section 45Q is 

2 allowed under section 38 for such taxable year. 

3 ‘‘(B) QUALIFYING ADVANCED ENERGY

4 PROJECT CREDIT.—No credit shall be allowed 

5 under this section with respect to any qualifying 

6 carbon dioxide removal project for which a cred7 it determined under section 48C is allowed 

8 under section 38 for the taxable year or any 

9 prior taxable year. 

10 ‘‘(C) SPECIAL RULE FOR QUALIFIED CAR11 BON DIOXIDE REMOVAL PROJECTS INTEGRATED

12 WITH CLEAN ENERGY GENERATION.— 

13 ‘‘(i) IN GENERAL.—In the case of any 

14 qualifying carbon dioxide removal project 

15 which produces electricity, hydrogen, or 

16 fuel as an output of its qualifying carbon 

17 dioxide removal approach, no credit shall 

18 be allowed with respect to such electricity, 

19 hydrogen, or fuel under section 40B, 45, 

20 45V, 45Y, or 45Z unless such electricity, 

21 hydrogen, or fuel is consumed by such 

22 qualifying carbon dioxide removal project. 

23 ‘‘(ii) ENERGY CREDIT AND CLEAN

24 ELECTRICITY INVESTMENT CREDIT.—In 


kjohnson on DSK7ZCZBW3PROD with $$_JOB
22 

•S 5369 IS

1 the case of any qualifying carbon dioxide 

2 removal project which includes— 

3 ‘‘(I) any energy property (as de4 fined in section 48(a)(3)) which pro5 duces electricity or hydrogen from the 

6 process of carbon dioxide removal, or 

7 ‘‘(II) any qualified facility (as de8 fined in section 48E(b)(3)) which pro9 duces electricity or hydrogen from the 

10 process of carbon dioxide removal, 

11 no credit shall be allowed under section 48 

12 or 48E with respect to such energy prop13 erty or qualified facility.’’. 

14 (b) ELECTIVE PAYMENT AND TRANSFER OF CRED15 IT.— 

16 (1) ELECTIVE PAYMENT.—Section 6417 of the 

17 Internal Revenue Code of 1986 is amended— 

18 (A) in subsection (b)— 

19 (i) by designating paragraphs (10) 

20 through (12) as paragraphs (11) through 

21 (13), respectively, and 

22 (ii) by inserting after paragraph (9) 

23 the following: 

24 ‘‘(10) The carbon dioxide removal credit under 

25 section 45BB.’’, and 


kjohnson on DSK7ZCZBW3PROD with $$_JOB
23 

•S 5369 IS

1 (B) in subsection (d)(1)— 

2 (i) in subparagraph (E), by striking 

3 ‘‘(C), or (D)’’ each place it appears and in4 serting ‘‘(C), (D), or (E)’’, 

5 (ii) by redesignating subparagraph 

6 (E) (as amended by clause (i)) as subpara7 graph (F), and 

8 (iii) by inserting after subparagraph 

9 (D) the following: 

10 ‘‘(E) ELECTION WITH RESPECT TO CAR11 BON DIOXIDE REMOVAL CREDIT.— 

12 ‘‘(i) IN GENERAL.—If a taxpayer 

13 other than an entity described in subpara14 graph (A) makes an election under this 

15 subparagraph with respect to any taxable 

16 year in which such taxpayer has, after De17 cember 31, 2024, placed in service any 

18 qualifying carbon dioxide removal project 

19 (as defined in section 45BB(c)), such tax20 payer shall be treated as an applicable en21 tity for purposes of this section for such 

22 taxable year, but only with respect to the 

23 credit described in subsection (b)(10). 

24 ‘‘(ii) LIMITATION.— 


kjohnson on DSK7ZCZBW3PROD with $$_JOB
24 

•S 5369 IS

1 ‘‘(I) IN GENERAL.—Except as 

2 provided in subclause (II), if a tax3 payer makes an election under this 

4 subparagraph with respect to any tax5 able year, such taxpayer shall be 

6 treated as having made such election 

7 for each of the 11 succeeding taxable 

8 years. 

9 ‘‘(II) EXCEPTION.—A taxpayer 

10 may elect to revoke the application of 

11 the election made under this subpara12 graph to any taxable year described in 

13 subclause (I). Any such election, if 

14 made, shall apply to the applicable 

15 year specified in such election and 

16 each subsequent taxable year within 

17 the period described in subclause (I). 

18 Any election under this subclause may 

19 not be subsequently revoked.’’. 

20 (2) TRANSFER.—Section 6418(f)(1)(A) of the 

21 Internal Revenue Code of 1986 is amended by add22 ing at the end the following: 

23 ‘‘(xii) The carbon dioxide removal 

24 credit under section 45BB.’’. 


kjohnson on DSK7ZCZBW3PROD with $$_JOB
25 

•S 5369 IS

1 (c) CREDIT TO BE PART OF GENERAL BUSINESS

2 CREDIT.—Section 38(b) of the Internal Revenue Code of 

3 1986, as amended by sections 13105, 13701, and 13704 

4 of Public Law 117-169, is amended by striking ‘‘plus’’ at 

5 the end of paragraph (40), by striking the period at the 

6 end of paragraph (41) and inserting ‘‘, plus’’, and by add7 ing at the end the following new paragraph: 

8 ‘‘(42) the carbon dioxide removal credit deter9 mined under section 45BB(a).’’. 

10 (d) CONFORMING AMENDMENT.—The table of sec11 tions for subpart D of part IV of subchapter A of chapter 

12 1 of the Internal Revenue Code of 1986 is amended by 

13 inserting after the item relating to section 45AA the fol14 lowing new item: 

‘‘Sec. 45BB. Technology-neutral credit for carbon dioxide removal.’’. 

15 (e) EFFECTIVE DATE.—The amendments made by 

16 this Act shall apply to property placed in service after De17 cember 31, 2024. 

Æ 


kjohnson on DSK7ZCZBW3PROD with $$_JOB