I 
119TH CONGRESS 
1ST SESSION H. R. 1946 
To amend the Internal Revenue Code of 1986 to repeal the carbon oxide 
sequestration credit. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 6, 2025 
Mr. PERRY (for himself and Mr. KHANNA) 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 repeal 
the carbon oxide sequestration credit. 
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 ‘‘45Q Repeal Act of 
2025’’. 
SEC. 2. REPEAL OF CARBON OXIDE SEQUESTRATION CRED-
IT. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by repealing section 45Q and by striking 
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the item relating to such section from the table of sections 
for such subpart. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 38(b) is amended by striking para-
graph (29). 
(2) Section 45V(d) is amended by striking 
paragraph (2). 
(3) Section 48(a)(15) is amended— 
(A) in subparagraph (B), by striking ‘‘or 
section 45Q’’, and 
(B) in subparagraph (C)(ii)(I), by striking 
‘‘or 45Q’’. 
(4) Section 45Y(b)(1)(D) is amended by strik-
ing ‘‘45Q,’’. 
(5) Section 45Y(b)(2)(D) is amended to read as 
follows: 
‘‘(D) CARBON CAPTURE AND SEQUESTRA-
TION EQUIPMENT.— 
‘‘(i) IN
GENERAL.—For purposes of 
this subsection, the amount of greenhouse 
gases emitted into the atmosphere by a fa-
cility in the production of electricity shall 
not include any qualified carbon dioxide 
that is captured by the taxpayer and— 
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‘‘(I) pursuant to any regulations 
established under clause (ii), disposed 
of by the taxpayer in secure geological 
storage, or 
‘‘(II) utilized by the taxpayer in 
a manner described in paragraph (5) 
of such section. 
‘‘(ii) REGULATIONS.— 
‘‘(I) IN
GENERAL.—The Sec-
retary, in consultation with the Ad-
ministrator of the Environmental Pro-
tection Agency, the Secretary of En-
ergy, and the Secretary of the Inte-
rior, shall establish regulations for de-
termining adequate security measures 
for the geological storage of qualified 
carbon oxide under clause (i) such 
that the qualified carbon oxide does 
not escape into the atmosphere. Such 
term shall include storage at deep sa-
line formations, oil and gas reservoirs, 
and unminable coal seams under such 
conditions as the Secretary may deter-
mine under such regulations. 
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45Q Repeal Act of 2025’’ after ‘‘45Q(d)’’, 
and 
(ii) in paragraph (3)(C)(i)(II)(bb), by 
striking ‘‘period described in paragraph 
(3)(A) or (4)(A) of section 45Q(a) with re-
spect to such equipment’’ and inserting 
‘‘12-year period beginning on the date the 
equipment was originally placed in serv-
ice’’. 
(11) Section 6418(f)(1)(A) is amended by strik-
ing clause (iii). 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2025. 
Æ 
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