End Polluter Welfare Act of 2025

In this Act, the term fossil fuel means coal, petroleum, natural gas, or any derivative of coal, petroleum, or natural gas that is used for fuel.

Section 8(a)(3) of the Outer Continental Shelf Lands Act (43 U.S.C. 1337(a)(3)) is amended—

(A) by striking subparagraph (B); and

(B) by redesignating subparagraph (C) as subparagraph (B).

Section 344 of the Energy Policy Act of 2005 (42 U.S.C. 15904) is repealed.

Section 345 of the Energy Policy Act of 2005 (42 U.S.C. 15905) is repealed.

The table of contents in section 1(b) of the Energy Policy Act of 2005 (Public Law 109–58; 119 Stat. 596) is amended by striking the items relating to sections 344 and 345.

Notwithstanding any other provision of law, royalty relief shall not be permitted under a lease issued under section 8 of the Outer Continental Shelf Lands Act (43 U.S.C. 1337).

Section 7(a) of the Mineral Leasing Act (30 U.S.C. 207(a)) is amended in the fourth sentence by striking 12 1/2 per centum and inserting 18 3/4 percent.

Section 14 of the Mineral Leasing Act (30 U.S.C. 223) is amended in the fourth sentence by striking 12 1/2 per centum and inserting 18 3/4 percent.

Section 17 of the Mineral Leasing Act (30 U.S.C. 226) is amended—

(1) in subsection (b)—

(A) in paragraph (1)(A), in the fifth sentence, by striking 16 2/3 percent each place it appears and inserting 18 3/4 percent; and

(B) in paragraph (2)(A)(ii), by striking 16 2/3 per centum and inserting not less than 18 3/4 percent;

(2) in subsection (l), by striking 16 2/3 per centum each place it appears and inserting 18 3/4 percent; and

(3) in subsection (n)(1)(C), by striking 16 2/3 per centum and inserting not less than 18 3/4 percent.

Section 8(a)(1) of the Outer Continental Shelf Lands Act (43 U.S.C. 1337(a)(1)) is amended by striking 16 2/3 percent, but not more than 18 3/4 percent, during the 10-year period beginning on the date of enactment of the Act titled An Act to provide for reconciliation pursuant to title II of S. Con. Res. 14, and not less than 16 2/3 percent thereafter, each place it appears and inserting 18 3/4 percent,.

Section 111 of the Federal Oil and Gas Royalty Management Act of 1982 (30 U.S.C. 1721) is amended by adding at the end the following:

Interest shall not be paid on any overpayment.

Section 1004(a) of the Oil Pollution Act of 1990 (33 U.S.C. 2704(a)) is amended—

(1) in paragraph (3), by striking plus $75,000,000; and and inserting and the liability of the responsible party under section 1002;;

(2) in paragraph (4)—

(A) by inserting (except an onshore pipeline transporting diluted bitumen, bituminous mixtures, or any oil manufactured from bitumen) after for any onshore facility; and

(B) by striking the period at the end and inserting; and; and

(3) by adding at the end the following:

(5) for any onshore facility transporting diluted bitumen, bituminous mixtures, or any oil manufactured from bitumen, the liability of the responsible party under section 1002.

In this section, the term international financial institution means—

(1) each institution described in section 1701(c) of the International Financial Institutions Act (22 U.S.C. 262r(c)); and

(2) the North American Development Bank.

Of the unobligated balance of amounts appropriated or otherwise made available for a contribution of the United States to an international financial institution, an amount specified in paragraph (2) shall be rescinded if the institution provides support for a project that supports the production or use of fossil fuels.

The amount specified in this paragraph is an amount the Secretary of the Treasury determines to be equivalent to the amount of support provided by an international financial institution described in paragraph (1) for a project that supports the production or use of fossil fuels.

No amounts appropriated or otherwise made available for a contribution of the United States to an international financial institution may be provided to the institution unless the institution agrees to not use the amount to provide support for any project that supports the production or use of fossil fuels.

Notwithstanding any other provision of law, the authority of the Secretary of Energy to carry out the Office of Fossil Energy and Carbon Management of the Department of Energy is terminated.

Notwithstanding any other provision of law—

(1) all amounts made available for the Office of Fossil Energy and Carbon Management that remain unobligated as of the date of enactment of this Act are rescinded; and

(2) no amounts made available after the date of enactment of this Act for the Office of Fossil Energy and Carbon Management shall be expended, other than such amounts as are necessary to cover costs incurred in terminating ongoing research of the Office of Fossil Energy and Carbon Management, as determined by the Secretary of Energy, in consultation with other appropriate Federal agencies.

Subject to subsection (b), none of the funds made available to the Loan Programs Office of the Department of Energy shall be used to carry out any project that supports fossil fuel, carbon capture, or hydrogen.

The prohibition on the use of funds for hydrogen projects under subsection (a) does not apply to projects that support qualified clean hydrogen (as defined in section 45V(c) of the Internal Revenue Code of 1986 (as amended by section 224(a)(3))).

Section 9003(j)(1) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8103(j)(1)) is amended—

(1) by inserting and after renewable energy systems,; and

(2) by striking and carbon capture and storage systems,.

None of the funds made available to the Advanced Research Projects Agency—Energy shall be used to carry out any project that supports fossil fuel.

Section 1703 of the Energy Policy Act of 2005 (42 U.S.C. 16513) is amended—

(1) in subsection (b)—

(A) by striking paragraphs (2) and (10); and

(B) by redesignating paragraphs (3), (4), (5), (6), (7), (8), (9), (11), (12), and (13) as paragraphs (2), (3), (4), (5), (6), (7), (8), (9), (10), and (11) respectively;

(2) by striking subsection (c); and

(3) by redesignating subsections (d) through (f) as subsections (c) through (e), respectively.

Section 1704 of the Energy Policy Act of 2005 (42 U.S.C. 16514) is amended—

(1) by striking subsection (b); and

(2) by redesignating subsection (c) as subsection (b).

Notwithstanding any other provision of law, the Secretary of Agriculture may not make a loan under title III of the Rural Electrification Act of 1936 (7 U.S.C. 931 et seq.) to an applicant for the purpose of carrying out any project that will use fossil fuel.

Notwithstanding any other provision of law, no amounts appropriated or otherwise made available for the United States International Development Finance Corporation, the Export-Import Bank of the United States, the United States Trade and Development Agency, the United States Agency for International Development, or the Millennium Challenge Corporation that are available for obligation on or after the date of enactment of this Act may be obligated or expended to support any project, transaction, or other activity that supports the production or use of fossil fuels.

Notwithstanding any other provision of law, any amounts made available to the Department of Transportation (including the Federal Railroad Administration) may not be used to award any grant, loan, loan guarantee, or provide any other direct assistance to any rail facility or port project that transports fossil fuel.

Section 101(20)(F) of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9601(20)(F)) is amended by adding at the end the following:

The exclusions under clauses (i) and (ii) shall not apply to a person that is a lender that is—

(I) an investment company registered under the Investment Company Act of 1940 (15 U.S.C. 80a–1 et seq.), an investment adviser (as defined in section 202(a) of the Investment Advisers Act of 1940 (15 U.S.C. 80b–2(a))), or a broker or dealer (as those terms are defined in section 3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a))) with $250,000,000,000 or more in assets under management; or

(II) a bank holding company (as defined in section 2 of the Bank Holding Company Act of 1956 (12 U.S.C. 1841)) with $10,000,000,000 or more in total consolidated assets.

Subchapter C of chapter 80 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:

The following provisions shall not apply to taxable years beginning after the date of the enactment of the End Polluter Welfare Act of 2025 :

(1) Section 43 (relating to enhanced oil recovery credit).

(2) Section 45I (relating to credit for producing oil and natural gas from marginal wells).

(3) Section 461(i)(2) (relating to special rule for spudding of oil or natural gas wells).

(4) Section 469(c)(3)(A) (relating to working interests in oil and natural gas property).

(5) Section 613A (relating to limitations on percentage depletion in case of oil and natural gas wells).

The following provisions shall not apply to property placed in service after the date of the enactment of the End Polluter Welfare Act of 2025 :

(1) Section 168(e)(3)(C)(iii) (relating to classification of certain property).

(2) Section 169 (relating to amortization of pollution control facilities) with respect to any atmospheric pollution control facility.

The following provisions shall not apply to costs or expenses paid or incurred after the date of the enactment of the End Polluter Welfare Act of 2025 :

(1) Section 179B (relating to deduction for capital costs incurred in complying with Environmental Protection Agency sulfur regulations).

(2) Section 468 (relating to special rules for mining and solid waste reclamation and closing costs).

No new credits shall be certified under section 48A (relating to qualifying advanced coal project credit) after the date of the enactment of the End Polluter Welfare Act of 2025.

Section 148(b)(4) (relating to safe harbor for prepaid natural gas) shall not apply to obligations issued after the date of the enactment of the End Polluter Welfare Act of 2025.

(1) Section 613(d) of the Internal Revenue Code of 1986 is amended by striking Except as provided in section 613A, in the case and inserting In the case.

(2) The table of sections for subchapter C of chapter 90 of such Code is amended by adding at the end the following new item:

Section 168(k) of the Internal Revenue Code of 1986 is amended by adding at the end the following:

This subsection shall not apply with respect to any property which is primarily used for fossil fuel activities and is placed in service during any taxable year beginning after the date of the enactment of the End Polluter Welfare Act of 2025.

For purposes of this paragraph, the term fossil fuel activities means the exploration, development, mining or production, processing, refining, transportation (including pipelines transporting gas, oil, or products thereof), distribution, or marketing of coal, petroleum, natural gas, or any derivative of coal, petroleum, or natural gas that is used for fuel.

The property described in subparagraph (A) shall not include any motor vehicle service station or convenience store which does not qualify as a retail motor fuels outlet under subsection (e)(3)(E)(iii).

Section 199A(c)(3)(B) of the Internal Revenue Code of 1986 is amended by adding at the end the following:

(viii) Any item of gain or loss derived from fossil fuel activities (as defined in section 168(k)(11)(B)) during any taxable year beginning after the date of the enactment of the End Polluter Welfare Act of 2025.

Section 41(d)(4) of the Internal Revenue Code of 1986 is amended by adding at the end the following:

Any research related to fossil fuel activities (as defined in section 168(k)(11)(B)) which is conducted after the date of the enactment of the End Polluter Welfare Act of 2025.

Subclause (V) of section 250(b)(3)(A)(i) of the Internal Revenue Code of 1986 is amended to read as follows:

(V) any income derived from fossil fuel activities (as defined in section 168(k)(11)(B)) during any taxable year beginning after the date of the enactment of the End Polluter Welfare Act of 2025, and

Section 1031(a)(2) of the Internal Revenue Code of 1986 is amended to read as follows:

This subsection shall not apply to—

(A) any exchange of real property held primarily for sale, or

(B) any exchange of real property which—

(i) is used for fossil fuel activities (as defined in section 168(k)(11)(B)), and

(ii) occurs after the date of the enactment of the End Polluter Welfare Act of 2025.

Section 167(h) of the Internal Revenue Code of 1986 is amended—

(1) by striking 24-month period each place it appears in paragraphs (1) and (4) and inserting 84-month period,

(2) by striking paragraph (2) and inserting the following:

For purposes of paragraph (1), any payment paid or incurred during any month shall be treated as paid or incurred on the mid-point of such month.

(2) , and

(3) by striking paragraph (5).

The amendments made by this section shall apply to amounts paid or incurred after the date of the enactment of this Act.

Section 168(e)(3)(E) of the Internal Revenue Code of 1986 is amended by striking and at the end of clause (vi), by striking the period at the end of clause (vii) and inserting, and, and by adding at the end the following new clause:

(viii) any natural gas gathering line the original use of which commences with the taxpayer after the date of the enactment of this clause.

The table contained in section 168(g)(3)(B) of the Internal Revenue Code of 1986 is amended by inserting after the item relating to subparagraph (E)(vii) the following new item:

Clause (iv) of section 168(e)(3)(C) of the Internal Revenue Code of 1986 is amended by inserting and on or before the date of the enactment of the End Polluter Welfare Act of 2025 after April 11, 2005.

The amendments made by this section shall apply to property placed in service on and after the date of the enactment of this Act.

The amendments made by this section shall not apply to any property with respect to which the taxpayer or a related party has entered into a binding contract for the construction thereof on or before the date of the introduction of this Act, or, in the case of self-constructed property, has started construction on or before such date.

Section 472 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:

Subsection (a) shall not apply to any taxpayer that is in the trade or business of the production, refining, processing, transportation, or distribution of oil, natural gas, or coal for any taxable year beginning after the date of enactment of the End Polluter Welfare Act of 2025.

Section 473 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:

This section shall not apply to any taxpayer that is in the trade or business of the production, refining, processing, transportation, or distribution of oil, natural gas, or coal for any taxable year beginning after the date of enactment of the End Polluter Welfare Act of 2025.

In the case of any taxpayer required by the amendments made by this section to change its method of accounting for its first taxable year beginning after the date of enactment of this Act—

(1) such change shall be treated as initiated by the taxpayer, and

(2) such change shall be treated as made with the consent of the Secretary of the Treasury.

The amendments made by this section shall apply to taxable years beginning after the date of enactment of this Act.

Section 613 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:

In the case of coal, lignite, and oil shale (other than oil shale described in subsection (b)(5)), the allowance for depletion shall be computed without reference to this section for any taxable year beginning after the date of the enactment of the End Polluter Welfare Act of 2025.

Section 613(b)(4) of the Internal Revenue Code of 1986 is amended by striking coal, lignite,.

Section 613(b)(2) of such Code is amended to read as follows:

If, from deposits in the United States, gold, silver, copper, and iron ore.

The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.

Subsection (c) of section 631 of the Internal Revenue Code of 1986 is amended—

(1) by striking coal (including lignite), or iron ore and inserting iron ore,

(2) by striking coal or iron ore each place it appears and inserting iron ore,

(3) by striking iron ore or coal each place it appears and inserting iron ore, and

(4) by striking coal or in the heading.

(1) The heading of section 631 of the Internal Revenue Code of 1986 is amended by striking, coal,.

(2) Section 1231(b)(2) of such Code is amended by striking, coal,.

The amendments made by this section shall apply to dispositions after the date of the enactment of this Act.

Section 901 of the Internal Revenue Code of 1986 is amended by redesignating subsection (n) as subsection (o) and by inserting after subsection (m) the following new subsection:

Notwithstanding any other provision of this chapter, any amount paid or accrued to a foreign country or possession of the United States for any period by a dual capacity taxpayer which is in the trade or business of the production, refining, processing, transportation, or distribution of fossil fuel shall not be considered a tax—

(A) if, for such period, the foreign country or possession does not impose a generally applicable income tax, or

(B) to the extent such amount exceeds the amount (determined in accordance with regulations) which—

(i) is paid by such dual capacity taxpayer pursuant to the generally applicable income tax imposed by the country or possession, or

(ii) would be paid if no amount other than the amount required to be paid by such taxpayer under the generally applicable income tax imposed by the country or possession were paid or accrued by such dual capacity taxpayer.

(B) Nothing in this paragraph shall be construed to imply the proper treatment of any such amount not in excess of the amount determined under subparagraph (B).

For purposes of this subsection, the term dual capacity taxpayer means, with respect to any foreign country or possession of the United States, a person who—

(A) is subject to a levy of such country or possession, and

(B) receives (or will receive) directly or indirectly a specific economic benefit (as determined in accordance with regulations) from such country or possession.

For purposes of this subsection—

The term generally applicable income tax means an income tax (or a series of income taxes) which is generally imposed under the laws of a foreign country or possession on income derived from the conduct of a trade or business within such country or possession.

Such term shall not include a tax unless it has substantial application, by its terms and in practice, to—

(i) persons who are not dual capacity taxpayers, and

(ii) persons who are—

(I) citizens or residents of the foreign country or possession, or

(II) organized or incorporated under the laws of the foreign country or possession.

For purposes of this subsection, the term fossil fuel means coal, petroleum, natural gas, or any derivative of coal, petroleum, or natural gas that is used for fuel.

The amendments made by this section shall apply to taxes paid or accrued in taxable years beginning after the date of the enactment of this Act.

Notwithstanding sections 894 or 7852(d) of the Internal Revenue Code of 1986, the amendments made by this section shall apply without regard to any treaty obligation of the United States.

Section 4611 of the Internal Revenue Code of 1986 is amended—

(1) in subsection (c)(2)(B)—

(A) in clause (i), by striking and at the end,

(B) in clause (ii), by striking the period at the end and inserting, and, and

(C) by adding at the end the following:

(iii) in the case of crude oil received or petroleum products entered after December 31, 2025, 10 cents a barrel.

(C) , and

(2) by striking subsection (f) and inserting the following:

The Oil Spill Liability Trust Fund financing rate under subsection (c) shall apply on and after April 1, 2006, or if later, the date which is 30 days after the last day of any calendar quarter for which the Secretary estimates that, as of the close of that quarter, the unobligated balance in the Oil Spill Liability Trust Fund is less than $2,000,000,000.

The amendments made by this section shall apply to crude oil received and petroleum products entered after December 31, 2025.

Paragraph (1) of section 4612(a) of the Internal Revenue Code of 1986 is amended to read as follows:

The term crude oil includes crude oil condensates, natural gasoline, and synthetic crude oil.

For purposes of subparagraph (A), the term synthetic crude oil means—

(i) any bitumen and bituminous mixtures,

(ii) any oil derived from bitumen and bituminous mixtures (including oil derived from tar sands),

(iii) any liquid fuel derived from coal, and

(iv) any oil derived from kerogen-bearing sources (including oil derived from oil shale).

Subsection (a) of section 4612 of the Internal Revenue Code of 1986 is amended by adding at the end the following:

Under such regulations as the Secretary may prescribe, the Secretary may include as crude oil or as a petroleum product subject to tax under section 4611, any fuel feedstock or finished fuel product customarily transported by pipeline, vessel, railcar, or tanker truck if the Secretary determines that—

(A) the classification of such fuel feedstock or finished fuel product is consistent with the definition of oil under the Oil Pollution Act of 1990, and

(B) such fuel feedstock or finished fuel product is produced in sufficient commercial quantities as to pose a significant risk of hazard in the event of a discharge.

Paragraph (2) of section 4612(a) of the Internal Revenue Code of 1986 is amended by striking from a well located.

The amendments made by this section shall apply to oil and petroleum products received or entered during calendar quarters beginning more than 60 days after the date of the enactment of this Act.

Section 162(f) of the Internal Revenue Code of 1986 is amended—

(1) by redesignating paragraph (5) as paragraph (6), and

(2) by inserting after paragraph (4) the following:

Notwithstanding paragraphs (2) and (3), no deduction shall be allowed under this chapter for any costs or damages for which the taxpayer is liable under section 1002 of the Oil Pollution Act of 1990 (33 U.S.C. 2702)

The amendments made by this section shall apply with respect to any liability arising in taxable years ending after the date of the enactment of this Act.

Subtitle E of the Internal Revenue Code of 1986 is amended by adding at the end the following new chapter:

In addition to any other tax imposed under this title, there is hereby imposed a tax equal to 13 percent of the removal price of any taxable crude oil or natural gas removed from the premises during any taxable period.

There shall be allowed as a credit against the tax imposed by subsection (a) with respect to the production of any taxable crude oil or natural gas an amount equal to the aggregate amount of royalties paid under Federal law with respect to such production.

The aggregate amount of credits allowed under paragraph (1) to any taxpayer for any taxable period shall not exceed the amount of tax imposed by subsection (a) for such taxable period.

The tax imposed by this section shall be paid by the producer of the taxable crude oil or natural gas.

For purposes of this chapter, the term taxable crude oil or natural gas means crude oil or natural gas which is produced from Federal submerged lands on the outer Continental Shelf in the Gulf of Mexico pursuant to a lease entered into with the United States which authorizes the production.

For purposes of this chapter—

Except as otherwise provided in this subsection, the term removal price means—

(A) in the case of taxable crude oil, the amount for which a barrel of such crude oil is sold, and

(B) in the case of taxable natural gas, the amount per 1,000 cubic feet for which such natural gas is sold.

In the case of a sale between related persons, the removal price shall not be less than the constructive sales price for purposes of determining gross income from the property under section 613.

If crude oil or natural gas is removed from the property before it is sold, the removal price shall be the constructive sales price for purposes of determining gross income from the property under section 613.

If the manufacture or conversion of crude oil into refined products begins before such oil is removed from the property—

(A) such oil shall be treated as removed on the day such manufacture or conversion begins, and

(B) the removal price shall be the constructive sales price for purposes of determining gross income from the property under section 613.

The term property has the meaning given such term by section 614.

The Secretary shall provide for the withholding and deposit of the tax imposed under section 5901 on a quarterly basis.

Each taxpayer liable for tax under section 5901 shall keep such records, make such returns, and furnish such information (to the Secretary and to other persons having an interest in the taxable crude oil or natural gas) with respect to such oil as the Secretary may by regulations prescribe.

Except as provided by the Secretary, each calendar year shall constitute a taxable period.

The Secretary shall provide for the filing, and the time for filing, of the return of the tax imposed under section 5901.

For purposes of this chapter—

The term producer means the holder of the economic interest with respect to the crude oil or natural gas.

The term crude oil includes crude oil condensates and natural gasoline.

The terms premises and crude oil product have the same meanings as when used for purposes of determining gross income from the property under section 613.

In determining the removal price of oil or natural gas from a property in the case of any transaction, the Secretary may adjust the removal price to reflect clearly the fair market value of oil or natural gas removed.

The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this chapter.

The first sentence of section 164(a) of the Internal Revenue Code of 1986 is amended by inserting after paragraph (4) the following new paragraph:

(5) The tax imposed by section 5901(a) (after application of section 5901(b)) on the severance of crude oil or natural gas from the outer Continental Shelf in the Gulf of Mexico.

The table of chapters for subtitle E is amended by adding at the end the following new item:

The amendments made by this section shall apply to crude oil or natural gas removed after December 31, 2025.

Section 7704(d)(1) of the Internal Revenue Code of 1986 is amended by inserting or any coal, petroleum, natural gas, or any derivative of coal, petroleum, or natural gas that is used for fuel after section 613(b)(7).

The amendment made by this section shall apply to taxable years beginning after the date of the enactment of this Act.

Section 193 of the Internal Revenue Code of 1986 is amended—

(1) by striking subsection (a) and inserting the following:

Any qualified tertiary injectant expenses paid or incurred by the taxpayer shall be allowed as a deduction ratably over the 84-month period beginning on the date that such expense was paid or incurred.

For purposes of paragraph (1), any expenses paid or incurred during any month shall be treated as paid or incurred on the mid-point of such month.

(1) , and

(2) by striking subsection (c) and inserting the following:

Except as provided in this section, no depreciation or amortization deduction shall be allowed with respect to qualified tertiary injectant expenses.

The amendments made by this section shall apply to expenses paid or incurred in taxable years beginning after the date of the enactment of this Act.

Section 616 of the Internal Revenue Code of 1986 is amended to read as follows:

Any expenditures paid or incurred for the development of a mine or other natural deposit (other than an oil or gas well) if paid or incurred after the existence of ores or minerals in commercially marketable quantities has been disclosed shall be allowed as a deduction ratably over the 84-month period beginning on the date that such expenditure was paid or incurred.

For purposes of subsection (a), any expenditures paid or incurred during any month shall be treated as paid or incurred on the mid-point of such month.

Except as provided in this section, no depreciation or amortization deduction shall be allowed with respect to expenditures described in subsection (a).

If any property with respect to which expenditures described in subsection (a) are paid or incurred is retired or abandoned during the 84-month period described in such subsection, no deduction shall be allowed on account of such retirement or abandonment and the amortization deduction under this section shall continue with respect to such payment.

(1) The item relating to section 616 in the table of sections for part I of subchapter I of chapter 1 of the Internal Revenue Code of 1986 is amended to read as follows:

(2) Section 56(a)(2)(A) of such Code is amended by striking 616(a) or.

(3) Section 59(e) of such Code is amended—

(A) in paragraph (2)—

(i) in subparagraph (C), by inserting or at the end,

(ii) by striking subparagraph (D), and

(iii) by redesignating subparagraph (E) as subparagraph (D), and

(B) in paragraph (5)(A), by striking, 616(a),.

(4) Section 263(a)(1) of such Code is amended by striking subparagraph (A).

(5) Section 263A(c)(3) of such Code is amended by striking 616,.

(6) Section 291(b) of such Code is amended—

(A) in paragraph (1)(B), by striking 616(a) or,

(B) in paragraph (2), by striking, 616(a),, and

(C) in paragraph (3), by striking, 616(a),.

(7) Section 312(n)(2)(B) of such Code is amended by striking 616(a) or.

(8) Section 381(c) of such Code is amended by striking paragraph (10).

(9) Section 1016(a) of such Code is amended by striking paragraph (9).

(10) Section 1254(a)(1)(A)(i) of such Code is amended by striking, 616,.

The amendments made by this section shall apply to expenditures paid or incurred in taxable years beginning after the date of the enactment of this Act.

Section 617 of the Internal Revenue Code of 1986 is amended to read as follows:

Any expenditures paid or incurred for the purpose of ascertaining the existence, location, extent, or quality of any deposit of ore or other mineral, and paid or incurred before the beginning of the development stage of the mine, shall be allowed as a deduction ratably over the 84-month period beginning on the date that such expense was paid or incurred.

For purposes of subsection (a), any expenditures paid or incurred during any month shall be treated as paid or incurred on the mid-point of such month.

Except as provided in this section, no depreciation or amortization deduction shall be allowed with respect to expenditures described in subsection (a).

If any property with respect to which expenditures described in subsection (a) are paid or incurred is retired or abandoned during the 84-month period described in such subsection, no deduction shall be allowed on account of such retirement or abandonment and the amortization deduction under this section shall continue with respect to such payment.

(1) The item relating to section 617 in the table of sections for part I of subchapter I of chapter 1 of the Internal Revenue Code of 1986 is amended to read as follows:

(2) Section 56(a) of such Code, as amended by section 215(b)(2), is amended by striking paragraph (2).

(3) Section 59(e) of such Code, as amended by section 215(b)(3), is amended—

(A) in paragraph (2)—

(i) in subparagraph (B), by inserting or at the end,

(ii) in subparagraph (C), by striking the comma at the end and inserting a period, and

(iii) by striking subparagraph (D), and

(B) by striking paragraph (5) and inserting the following:

In the case of any disposition of property to which section 1254 applies (determined without regard to this section), any deduction under paragraph (1) with respect to amounts which are allocable to such property shall, for purposes of section 1254, be treated as a deduction allowable under section 263(c).

(4) Section 170(e) of such Code is amended—

(A) in paragraph (1), by striking 617(d)(1),, and

(B) in paragraph (3)(D), by striking 617,.

(5) Section 263A(c)(3) of such Code, as amended by section 215(b)(5), is amended by striking 291(b)(2), or 617 and inserting or 291(b)(2).

(6) Section 291(b) of such Code, as amended by section 215(b)(6), is amended—

(A) in the heading, by striking and mineral exploration and development costs,

(B) by striking paragraph (1) and inserting the following:

In the case of an integrated oil company, the amount allowable as a deduction for any taxable year (determined without regard to this section) under section 263(c) shall be reduced by 30 percent.

(C) in paragraph (2), by striking or 617(a) (as the case may be), and

(D) in paragraph (3), by striking or 617(a) (whichever is appropriate).

(7) Section 312(n), as amended by section 215(b)(7), is amended by striking paragraph (2) and inserting the following:

Any amount allowable as a deduction under section 263(c) in determining taxable income (other than costs incurred in connection with a nonproductive well)—

(A) shall be capitalized, and

(B) shall be allowed as a deduction ratably over the 60-month period beginning with the month in which such amount was paid or incurred.

(8) Section 703(b) of such Code is amended—

(A) in paragraph (1), by adding or at the end,

(B) by striking paragraph (2), and

(C) by redesignating paragraph (3) as paragraph (2).

(9) Section 751(c) of such Code is amended—

(A) by inserting, as in effect on the day before the date of the enactment of the End Polluter Welfare Act of 2025 after section 617(f)(2), and

(B) by striking 617(d)(1),.

(10) Section 1254(a)(1)(A)(i) of such Code, as amended by section 215(b)(10), is amended by striking or 617.

(11) Paragraph (2) of section 1363(c) of such Code is amended to read as follows:

In the case of an S corporation, elections under section 901 (relating to taxes of foreign countries and possessions of the United States) shall be made by each shareholder separately.

The amendments made by this section shall apply to expenditures paid or incurred in taxable years beginning after the date of the enactment of this Act.

Subsection (c) of section 263 of the Internal Revenue Code of 1986 is amended to read as follows:

Notwithstanding subsection (a), and except as provided in subsection (i), a taxpayer may elect to deduct as expenses intangible drilling and development costs in the case of wells drilled for any geothermal deposit (as defined in section 613(e)(2)) in such manner as the Secretary provides. This subsection shall not apply with respect to any costs to which any deduction is allowed under section 59(e).

Notwithstanding subsection (a), and except as provided in subsection (i), in the case of any expenses paid or incurred in taxable years beginning after the date of the enactment of End Polluter Welfare Act of 2025 in connection with intangible drilling and development costs related to oil and gas wells—

(A) such expenses shall be allowed as a deduction ratably over the 84-month period beginning on the date that such expense was paid or incurred,

(B) any such expenses paid or incurred during any month shall be treated as paid or incurred on the mid-point of such month,

(C) except as provided in this paragraph, no depreciation or amortization deduction shall be allowed with respect to such expenses, and

(D) if any property with respect to which such intangible drilling and development costs are paid or incurred is retired or abandoned during such 84-month period, no deduction shall be allowed on account of such retirement or abandonment and the amortization deduction under this paragraph shall continue with respect to such payment.

(1) Paragraph (2) of section 57(a) of the Internal Revenue Code of 1986 is amended to read as follows:

With respect to all geothermal properties of the taxpayer, the amount (if any) by which the amount of the excess intangible drilling costs arising in the taxable year is greater than 65 percent of the net income of the taxpayer from geothermal properties for the taxable year.

For purposes of subparagraph (A), the amount of the excess intangible drilling costs arising in the taxable year is the excess of—

(i) the intangible drilling and development costs paid or incurred in connection with geothermal wells (other than costs incurred in drilling a nonproductive well) allowable under section 263(c)(1) for the taxable year, over

(ii) the amount which would have been allowable for the taxable year if such costs had been capitalized and straight line recovery of intangibles (as defined in subsection (b)) had been used with respect to such costs.

For purposes of subparagraph (A), the amount of the net income of the taxpayer from geothermal properties for the taxable year is the excess of—

(i) the aggregate amount of gross income (within the meaning of section 613(a)) from all geothermal properties of the taxpayer received or accrued by the taxpayer during the taxable year, over

(ii) the amount of any deductions allocable to such properties reduced by the excess described in subparagraph (B) for such taxable year.

(2) Section 59(e) of such Code, as amended by sections 215 and 216, is amended—

(A) in paragraph (2)(C), by striking section 263(c) and inserting section 263(c)(1), and

(B) in paragraph (5), by striking section 263(c) and inserting section 263(c)(1).

(3) Section 263A(c)(3) of such Code, as amended by sections 215 and 216, is amended—

(A) in the heading, by striking oil and gas and inserting geothermal, and

(B) by striking 263(c), and inserting 263(c)(1).

(4) Section 291 of such Code, as amended by sections 215 and 216, is amended by striking subsection (b).

(5) Section 312(n) of such Code, as amended by sections 215 and 216, is amended by striking section 263(c), and inserting section 263(c)(1).

The amendments made by this section shall apply to expenditures paid or incurred in taxable years beginning after the date of the enactment of this Act.

Section 4121(b) of the Internal Revenue Code of 1986 is amended—

(1) in paragraph (1), by striking $1.10 and inserting $1.38, and

(2) in paragraph (2), by striking $.55 and inserting $0.69.

The amendments made by this section shall apply on and after the first day of the first calendar month beginning after the date of the enactment of this Act.

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

(1) in subsection (b)(2)—

(A) in the first sentence, by striking, the 8 cent amount and all that follows through in 2002 and inserting and the 8 cent amount in paragraph (1), and

(B) in the third sentence, by striking In any other case, if an amount and inserting If the 8 cent amount,

(2) in subsection (c), by striking paragraph (7),

(3) in subsection (d), by striking paragraph (8), and

(4) in subsection (e)—

(A) by striking paragraph (8), and

(B) by striking paragraph (9) and inserting the following:

The term qualified facility shall not include any facility which produces electricity from gas derived from the biodegradation of municipal solid waste if such biodegradation occurred in a facility (within the meaning of section 45K) the production from which is allowed as a credit under section 45K for the taxable year or any prior taxable year.

(1) Section 38(c)(4)(B)(iv) of the Internal Revenue Code of 1986 is amended by striking or refined coal.

(2) Section 45K(g)(2) of such Code is amended by striking subparagraph (E).

The amendments made by this section shall apply to coal produced after December 31, 2025.

Section 954(a) of the Internal Revenue Code of 1986 is amended by striking and at the end of paragraph (2), by striking the period at the end of paragraph (3) and inserting, and, and by adding at the end the following new paragraph:

(4) the foreign base company oil related income for the taxable year (determined under subsection (f) and reduced as provided in subsection (b)(5)).

Section 954 of the Internal Revenue Code of 1986 is amended by inserting after subsection (e) the following new subsection:

For purposes of this section—

Except as otherwise provided in this subsection, the term foreign base company oil related income means foreign oil related income (within the meaning of paragraphs (2) and (3) of section 907(c)) other than income derived from a source within a foreign country in connection with—

(A) oil or gas which was extracted from an oil or gas well located in such foreign country, or

(B) oil, gas, or a primary product of oil or gas which is sold by the foreign corporation or a related person for use or consumption within such country or is loaded in such country on a vessel or aircraft as fuel for such vessel or aircraft.

Such term shall not include any foreign personal holding company income (as defined in subsection (c)).

The term foreign base company oil related income shall not include any income of a foreign corporation if such corporation is not a large oil producer for the taxable year.

For purposes of subparagraph (A), the term large oil producer means any corporation if, for the taxable year or for the preceding taxable year, the average daily production of foreign crude oil and natural gas of the related group which includes such corporation equaled or exceeded 1,000 barrels.

The term related group means a group consisting of the foreign corporation and any other person who is a related person with respect to such corporation.

For purposes of this paragraph, the average daily production of foreign crude oil or natural gas of any related group for any taxable year (and the conversion of cubic feet of natural gas into barrels) shall be determined under rules similar to the rules of section 613A (as in effect on the day before the date of enactment of the End Polluter Welfare Act of 2025) except that only crude oil or natural gas from a well located outside the United States shall be taken into account.

(1) Section 952(c)(1)(B)(iii) of the Internal Revenue Code of 1986 is amended by redesignating subclauses (I) through (IV) as subclauses (II) through (V), respectively, and by inserting before subclause (II) (as so redesignated) the following:

(I) foreign base company oil related income,

(2) Section 954(b) of such Code is amended—

(A) by inserting at the end of paragraph (4) the following: The preceding sentence shall not apply to foreign base company oil-related income described in subsection (a)(4).,

(B) by striking and the foreign base company services income in paragraph (5) and inserting the foreign base company services income, and the foreign base company oil related income, and

(C) by adding at the end the following new paragraph:

Income of a corporation which is foreign base company oil related income shall not be considered foreign base company income of such corporation under paragraph (2) or (3) of subsection (a).

The amendments made by this section shall apply to taxable years of foreign corporations beginning after the date of the enactment of this Act and to taxable years of United States shareholders ending with or within which such taxable years of foreign corporations end.

Section 951A(c)(2)(A)(i) of the Internal Revenue Code of 1986 is amended—

(1) by adding and at the end of subclause (III),

(2) by striking and at the end of subclause (IV) and inserting over, and

(3) by striking subclause (V).

The amendments made by this section shall apply to taxable years of foreign corporations beginning after the date of enactment of this Act, and to taxable years of United States shareholders in which or with which such taxable years of foreign corporations end.

Section 45Q of the Internal Revenue Code of 1986 is amended by adding at the end the following:

This section shall not apply with respect to any qualified carbon oxide captured after the date of enactment of the End Polluter Welfare Act of 2025.

Not later than 6 months after the date of enactment of this Act, the Secretary of the Treasury, or the Secretary's delegate, shall submit a report to Congress, to be made available to the public, which provides the following information:

(A) The taxpayer identity information of any taxpayer for which the carbon oxide sequestration credit under section 45Q of the Internal Revenue Code of 1986 was allowed for any taxable year following the enactment of such section.

(B) The total amount of the credit allowed pursuant to such section to each taxpayer described in subparagraph (A).

(C) With respect to the amount described in subparagraph (B), the amount of such credit allowed with respect to each of the following:

(i) Qualified carbon oxide which was captured and disposed of by the taxpayer in secure geological storage and not used by the taxpayer as described in clause (ii) or (iii).

(ii) Qualified carbon oxide which was captured and 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.

(iii) Qualified carbon oxide which was captured and utilized by the taxpayer in a manner described in section 45Q(f)(5) of the Internal Revenue Code of 1986.

Section 6103(l) of the Internal Revenue Code of 1986 is amended by adding at the end the following:

The Secretary may disclose taxpayer identity information and return information to the extent the Secretary deems necessary for purposes of the report issued pursuant to section 222 of the End Polluter Welfare Act of 2025.

Section 313(j) of the Tariff Act of 1930 (19 U.S.C. 1313(j)) is amended by adding at the end the following new paragraph:

(7) No amount of any tax imposed on any merchandise pursuant to section 4611 of the Internal Revenue Code of 1986 shall be eligible to be refunded as drawback under this subsection.

The amendment made by this section shall apply with respect to articles entered, or withdrawn from warehouse for consumption, on or after January 1, 2026.

Section 45V of the Internal Revenue Code of 1986, as amended by section 70511 of Public Law 119–21, is amended—

(1) in subsection (a), by striking paragraph (2) and inserting the following:

(2) $0.60.

(2) by striking subsection (b) and inserting the following:

The $0.60 amount in subsection (a)(2) shall be adjusted by multiplying such amount by the inflation adjustment factor (as determined under section 45(e)(2), determined by substituting 2024 for 1992 in subparagraph (B) thereof) for the calendar year in which the qualified clean hydrogen is produced. If any amount as increased under the preceding sentence is not a multiple of 0.1 cent, such amount shall be rounded to the nearest multiple of 0.1 cent.

(3) in subsection (c)—

(A) by striking paragraph (1),

(B) in paragraph (2)—

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

The term qualified clean hydrogen means hydrogen produced using an electrolyzer for which the electricity used is—

(I) produced at a facility which—

(aa) uses qualified renewable energy resources to produce such electricity,

(bb) was placed in service not greater than 36 months prior to the date on which the facility which produces such hydrogen was placed in service, and

(cc) is in the same region (as defined in the National Transmission Needs Study of the Department of Energy, dated October 30, 2023) as the facility which produces such hydrogen, and

(II) produced at the facility described in subclause (I) not less than 1 hour prior to use by the electrolyzer.

The term qualified renewable energy resources means—

(I) wind,

(II) solar energy,

(III) geothermal energy (as defined in section 45(c)(4)),

(IV) marine and hydrokinetic renewable energy (as defined in section 45(c)(10)), and

(V) hydropower.

(i) , and

(ii) by striking subparagraph (C),

(C) in paragraph (3)(C), by inserting, and which is placed in service after December 31, 2025 after January 1, 2028, and

(D) by redesignating paragraphs (2) and (3) as paragraphs (1) and (2), respectively,

(4) in subsection (e)—

(A) in paragraph (1), by striking described in subsection (b)(2) and inserting produced by the taxpayer, and

(B) in paragraph (3)(A)(ii), by striking subsection (a)(2) and inserting subsection (a)(1), and

(5) in subsection (f), by striking, including regulations or other guidance for determining lifecycle greenhouse gas emissions.

(1) Section 45(e)(13) of the Internal Revenue Code of 1986 is amended by striking section 45V(c)(3)) to produce qualified clean hydrogen (as defined in section 45V(c)(2)) and inserting section 45V(c)(2)) to produce qualified clean hydrogen (as defined in section 45V(c)(1)).

(2) Section 48(a)(15) of such Code is amended—

(A) in subparagraph (A), by striking clause (ii) and inserting the following:

(ii) the energy percentage with respect to such property is 6 percent.

(B) in subparagraph (C)—

(i) by striking section 45V(c)(3) and inserting section 45V(c)(2), and

(ii) in clause (i), by striking December 31, 2022 and inserting December 31, 2025, and

(C) in subparagraph (D), by striking section 45V(c)(2) and inserting section 45V(c)(1).

(3) Section 6417 of such Code is amended—

(A) in subsection (b)(5), by striking December 31, 2012 and inserting December 31, 2025, and

(B) in subsection (d)(1)(B), by striking section 45V(c)(3) and inserting section 45V(c)(2).

The amendments made by this section shall apply to facilities placed in service after December 31, 2025.

Sections 106, 107, 108, 109, 110, and 111 of the National Environmental Policy Act of 1969 (42 U.S.C. 4336, 4336a, 4336b, 4336c, 4336d, 4336e) are repealed.

Section 102(2) of the National Environmental Policy Act of 1969 (42 U.S.C. 4332(2)) is amended—

(1) in subparagraph (C)—

(A) in the matter preceding clause (i), by striking consistent with the provisions of this Act and except where compliance would be inconsistent with other statutory requirements,;

(B) by striking clauses (i) through (v) and inserting the following:

(i) the environmental impact of the proposed action;

(ii) any adverse environmental effects that cannot be avoided if the proposed action is implemented;

(iii) alternatives to the proposed action;

(iv) the relationship between local short-term uses of the human environment and the maintenance and enhancement of long-term productivity; and

(v) any irreversible and irretrievable commitments of resources that would be involved in the proposed action if the proposed action is implemented.

(B) ; and

(C) in the undesignated matter following clause (v) (as so amended), in the first sentence, by striking head of the lead agency and inserting responsible Federal official;

(2) by striking subparagraphs (D), (E), and (F);

(3) by redesignating subparagraphs (G) through (L) as subparagraphs (D) through (I), respectively; and

(4) in subparagraph (F) (as so redesignated), by striking consistent with the provisions of this Act,.

Section 9909(c)(1) of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (15 U.S.C. 4659(c)(1)) is amended by striking has the meaning given the term in section 111 of NEPA (42 U.S.C. 4336e) and inserting, with respect to a covered activity, means the Federal agency that proposed the covered activity.

Section 50264 of Public Law 117–169 (commonly known as the Inflation Reduction Act of 2022) (136 Stat. 2059) is repealed.

Section 50265 of Public Law 117–169 (commonly known as the Inflation Reduction Act of 2022) (43 U.S.C. 3006) is repealed.

Section 45X of the Internal Revenue Code of 1986, as amended by section 70514 of Public Law 119–21 (commonly known as the One Big Beautiful Bill Act), is amended—

(A) in subsection (b)(1)(M), by striking (2.5 percent in the case of metallurgical coal),

(B) in subsection (b)(3)—

(i) in subparagraph (C)—

(I) in the heading, by striking other than metallurgical coal,

(II) in clause (i), by striking (other than metallurgical coal), and

(III) in the heading of clause (ii), by striking other than metallurgical coal, and

(ii) by striking subparagraph (E), and

(C) in subsection (c)(6), by striking subparagraph (R).

The amendments made by section 70523 of Public Law 119–21 are repealed and the Internal Revenue Code of 1986 shall be applied as if such amendments had not been enacted.

Section 7704(d)(1)(E) of the Internal Revenue Code of 1986, as amended by section 70524 of Public Law 119–21, is amended—

(A) in clause (ii)(II), by inserting provided that such hydrogen is qualified clean hydrogen (as defined in section 45V(c)(1)(A)), after liquified hydrogen or compressed hydrogen,, and

(B) by striking clause (iii).

The provisions of, and the amendments made by, sections 50101, 50102, 50103, 50104, 50105, 50201, 50202, 50203, 50204, and 50403 of Public Law 119–21 (commonly known as the One Big Beautiful Bill Act) (139 Stat. 72) are repealed, and any provision of law amended or repealed by those sections shall be applied as if such amendments or repeals had not been enacted.

Section 136(g) of the Clean Air Act (42 U.S.C. 7436(g)) (as amended by section 60012(b) of Public Law 119–21 (commonly known as the One Big Beautiful Bill Act)) (139 Stat. 72) is amended by striking calendar year 2034 and inserting calendar year 2024.

Section 112 of the National Environmental Policy Act of 1969 (as added by section 60026 of Public Law 119–21 (commonly known as the One Big Beautiful Bill Act)) (139 Stat. 72) is repealed.

Public Law 119–2 (139 Stat. 7) is repealed.

The Administrator of the Environmental Protection Agency shall implement the final rule of the Environmental Protection Agency entitled Waste Emissions Charge for Petroleum and Natural Gas Systems: Procedures for Facilitating Compliance, Including Netting and Exemptions (89 Fed. Reg. 91094 (November 18, 2024)) as if Public Law 119–2 (139 Stat. 7) had not been enacted into law.

In this section, the term subsidy for fossil-fuel production means any direct funding, tax treatment or incentive, risk-reduction benefit, financing assistance or guarantee, royalty relief, or other provision that provides a financial benefit to a fossil-fuel company for the production of fossil fuels.

Not later than 1 year after the date of enactment of this Act, the Secretary of the Treasury or a delegate of the Secretary (referred to in this section as the Secretary), in coordination with the Secretary of Energy, shall submit to Congress a report detailing each Federal law (including regulations), other than those amended by this Act, as in effect on the date on which the report is submitted, that includes a subsidy for fossil-fuel production.

Not later than 1 year after the date of enactment of this Act, the Secretary, in coordination with the Commissioner of Internal Revenue, shall submit to Congress a report on the applicable recovery period under the accelerated cost recovery system provided in section 168 of the Internal Revenue Code of 1986 for each type of property involved in fossil-fuel production, including pipelines, power generation property, refineries, and drilling equipment, to determine if any assets are receiving a subsidy for fossil-fuel production.

In the case of any type of property that the Secretary determines is receiving a subsidy for fossil-fuel production under section 168 of the Internal Revenue Code of 1986, for property placed in service in taxable years beginning after the date of such determination, section 168 of the Internal Revenue Code of 1986 shall not apply.

Subparagraph (A) shall not apply to any property with respect to a taxable year unless such determination is published before the first day of such taxable year.