H.R.1003 - Enhancing Energy Recovery Act (119th Congress)
Summary
H.R. 1003, the "Enhancing Energy Recovery Act," aims to amend the Internal Revenue Code of 1986, specifically Section 45Q, to modify the carbon oxide sequestration credit. The bill seeks to create parity among different uses and utilizations of qualified carbon oxide. This includes secure geological storage, use as a tertiary injectant in enhanced oil or natural gas recovery, and other utilization methods.
Expected Effects
The bill's passage would likely incentivize carbon capture and sequestration by ensuring equal tax credit treatment for various carbon oxide utilization methods. This could lead to increased investment in carbon capture technologies and projects. It also modifies the applicable dollar amounts for the tax credit, adjusting them for inflation and specific utilization methods.
Potential Benefits
- Encourages investment in carbon capture and sequestration technologies.
- Promotes enhanced oil and natural gas recovery using captured carbon oxide.
- Provides clarity and parity in tax credits for different carbon utilization methods.
- Could lead to reduced carbon emissions through increased sequestration.
- May stimulate economic activity in the energy sector.
Potential Disadvantages
- Potential for increased fossil fuel extraction due to enhanced oil recovery incentives.
- Risk of prioritizing carbon sequestration over other climate change mitigation strategies.
- The bill may disproportionately benefit the oil and gas industry.
- Possible administrative complexities in implementing and monitoring the tax credit.
- The long-term effectiveness of carbon sequestration is still debated.
Constitutional Alignment
The bill appears to align with the General Welfare Clause of the Constitution, as it aims to promote economic activity and potentially mitigate climate change. Congress's power to levy taxes and regulate commerce is established in Article I, Section 8, and this bill falls under that purview. The bill does not appear to infringe on any specific constitutional rights or limitations.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).