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 Illi-
nois, Mr. MURPHY of Pennsylvania, Mr. JOHNSON of Ohio, Mr. BOU-
STANY, 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 se-
questration. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Carbon Capture Act’’. 
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SEC. 2. CARBON DIOXIDE SEQUESTRATION CREDIT IM-
PROVED AND MADE PERMANENT. 
(a) CREDIT MADE PERMANENT.—Section 45Q of the 
Internal Revenue Code of 1986 is amended by striking 
subsection (e). 
(b) INCREASE IN CREDIT FOR NEW FACILITIES.— 
(1) IN GENERAL.—Section 45Q of such Code, 
as amended by subsection (a), is amended by redes-
ignating subsections (b), (c), and (d) as subsections 
(c), (d), and (e), respectively, and by inserting after 
subsection (a) the following new subsection: 
‘‘(b) CREDIT RATES FOR NEW QUALIFIED FACILI-
TIES.— 
‘‘(1) IN GENERAL.—In the case of a taxable 
year beginning in a calendar year after 2024 with 
respect to a qualified facility at which carbon cap-
ture equipment is originally placed in service after 
December 31, 2015— 
‘‘(A) subsection (a)(1) shall be applied by 
substituting ‘$30’ for ‘$20’, and 
‘‘(B) subsection (a)(2) shall be applied by 
substituting ‘$30’ for ‘$10’. 
‘‘(2) PHASE-UP.—In the case of a qualified fa-
cility at which carbon capture equipment is origi-
nally placed in service during a calendar year after 
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2015 and before 2025 and any taxable year begin-
ning in such calendar year— 
‘‘(A) subsection (a)(1) shall be applied by 
substituting for ‘$20’ the dollar amount with 
respect to each calendar year determined by 
ratably increasing such dollar amount annually 
from $21.85 with respect to calendar year 2015 
to $30 with respect to calendar year 2025, and 
‘‘(B) subsection (a)(2) shall be applied by 
substituting for ‘$10’ the dollar amount with 
respect to each calendar year determined by 
ratably increasing such dollar amount annually 
from $10.92 with respect to calendar year 2015 
to $30 with respect to calendar year 2025. 
‘‘(3) INFLATION ADJUSTMENT.—In the case of 
any taxable year beginning in a calendar year after 
2025 with respect to a qualified facility at which 
carbon capture equipment is originally placed in 
service after December 31, 2015, there shall be sub-
stituted for each $30 amount contained in para-
graph (1) 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 
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43(b)(3)(B) for such calendar year, determined 
by substituting ‘2024’ for ‘1990’.’’. 
(2) 
CONFORMING
AMENDMENT.—Section 
45Q(e)(7) of such Code, as redesignated by para-
graph (1), is amended by inserting ‘‘with respect to 
a qualified facility at which carbon capture equip-
ment is originally placed in service before January 
1, 2016’’ after ‘‘2009’’. 
(c) ELECTION TO ALLOW CREDIT TO PERSON THAT 
DISPOSES OF, OR USES AS A TERTIARY INJECTANT, CAR-
BON DIOXIDE.—Section 45Q(e)(5) of such Code, as redes-
ignated by subsection (b), is amended— 
(1) by striking ‘‘Any credit’’ and inserting the 
following: 
‘‘(A) IN GENERAL.—Any credit’’, 
(2) by inserting ‘‘subparagraph (B) or’’ after 
‘‘except to the extent provided in’’, and 
(3) by adding at the end the following new sub-
paragraph: 
‘‘(B) ELECTION
TO
ALLOW
CREDIT
TO 
PERSON THAT DISPOSES OF, OR USES AS TER-
TIARY
INJECTANT, CARBON
DIOXIDE.—If the 
person described in subparagraph (A) makes an 
election under this subparagraph (as such time 
and in such manner as the Secretary may pre-
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