Enhanced Energy Recovery Act

Section 45Q of the Internal Revenue Code of 1986 is amended—

(1) in subsection (a)—

(A) in paragraph (2)(B)(ii), by adding and at the end,

(B) in paragraph (3), by striking subparagraph (B) and inserting the following:

(i) disposed of by the taxpayer in secure geological storage and not used by the taxpayer as described in clause (ii) or (iii),

(ii) used by the taxpayer as a tertiary injectant in a qualified enhanced oil or natural gas recovery project and disposed of by the taxpayer in secure geological storage, or

(iii) utilized by the taxpayer in a manner described in subsection (f)(5).

(B) , and

(C) by striking paragraph (4), and

(2) in subsection (b)—

(A) in paragraph (1)—

(i) by striking subparagraph (A) and inserting the following:

(A) Except as provided in subparagraph (B) or (C), the applicable dollar amount shall be an amount equal to—

(i) for any taxable year beginning in a calendar year after 2024 and before 2027, $17, and

(ii) for any taxable year beginning in a calendar year after 2026, an amount equal to the product of $17 and the inflation adjustment factor for such calendar year determined under section 43(b)(3)(B) for such calendar year, determined by substituting 2025 for 1990.

(i) , and

(ii) in subparagraph (B), by striking shall be applied and all that follows through the period and inserting shall be applied by substituting $36 for $17 each place it appears.,

(B) in paragraph (2)(B), by striking paragraphs (3)(A) and (4)(A) and inserting paragraph (3)(A), and

(C) in paragraph (3), by striking the dollar amounts applicable under paragraph (3) or (4) and inserting the dollar amount applicable under paragraph (3),

(3) in subsection (f)—

(A) in paragraph (5)(B)(i), by striking (4)(B)(ii) and inserting (3)(B)(iii), and

(B) in paragraph (9), by striking paragraphs (3) and (4) of subsection (a) and inserting subsection (a)(3), and

(4) in subsection (h)(3)(A)(ii), by striking paragraph (3)(A) or (4)(A) of subsection (a) and inserting subsection (a)(3)(A).

Section 6417(d)(3)(C)(i)(II)(bb) of the Internal Revenue Code of 1986 is amended by striking paragraph (3)(A) or (4)(A) of section 45Q(a) and inserting section 45Q(a)(3)(A).

The amendments made by this section shall apply to taxable years beginning after December 31, 2024.