45Q Repeal Act of 2025

Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by repealing section 45Q and by striking the item relating to such section from the table of sections for such subpart.

(1) Section 38(b) is amended by striking paragraph (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 striking 45Q,.

(5) Section 45Y(b)(2)(D) is amended to read as follows:

For purposes of this subsection, the amount of greenhouse gases emitted into the atmosphere by a facility in the production of electricity shall not include any qualified carbon dioxide that is captured by the taxpayer and—

(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.

The Secretary, in consultation with the Administrator of the Environmental Protection Agency, the Secretary of Energy, and the Secretary of the Interior, shall establish regulations for determining 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 saline formations, oil and gas reservoirs, and unminable coal seams under such conditions as the Secretary may determine under such regulations.

For purposes of this clause, the term qualified carbon oxide has the meaning given such term in section 45Q(c) as such section was in effect on the day before the date of the enactment of the 45Q Repeal Act of 2025.

(6) Section 45Z(d)(4)(B) is amended by striking clause (iii).

(7) Section 48C(f) is amended by striking 45Q,.

(8) Section 48E(b)(3)(C) is amended by striking clause (iii).

(9) Section 142(o)(1)(B) is amended by inserting, as such section was in effect on the day before the date of the enactment of the 45Q Repeal Act of 2025 after 45Q(e)(3).

(10) Section 6417 is amended—

(A) in subsection (b) by striking paragraph (3), and

(B) in subsection (d)—

(i) in paragraph (1)(C), by inserting, as such section was in effect on the day before the date of the enactment of the 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 respect to such equipment and inserting 12-year period beginning on the date the equipment was originally placed in service.

(11) Section 6418(f)(1)(A) is amended by striking clause (iii).

The amendments made by this section shall apply to taxable years beginning after December 31, 2025.