This part shuts firms tied to certain foreign governments out of a carbon capture credit. It also puts different uses of the captured gas on the same footing. The base rate becomes $17, rising with prices from 2027.
The document says “shall not”Who acts: Secretary of the TreasuryHow: statuteSec. 70522 in the PDF
What the document says
“No credit shall be determined under subsection (a) for any taxable year beginning after the date of enactment of this paragraph if the taxpayer is--”
The section adds a new paragraph (10) to section 45Q(f) of the Internal Revenue Code of 1986 barring the credit for a taxable year beginning after enactment where the taxpayer is a specified foreign entity as defined in section 7701(a)(51)(B) or a foreign-influenced entity as defined in section 7701(a)(51)(D) read without clause (i)(II).
What the document actually says
“No credit shall be determined under subsection (a) for any taxable year beginning after the date of enactment of this paragraph if the taxpayer is--”
That sentence, in plain words
No credit is given for a tax year that starts after this law. That holds if the taxpayer is one of the two kinds named below.
What this is about
One is a named foreign body. The other is a body under foreign sway. Both terms come from the tax code.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “shall”Who acts: Secretary of the TreasuryHow: statuteSec. 70522 in the PDF
What the document says
“for any taxable year beginning in a calendar year after 2024 and before 2027, $17, and”
The section merges the separate treatment of storage, use as a tertiary injectant and other utilization in section 45Q(a)(3) of the Internal Revenue Code of 1986, strikes paragraph (4), and sets a single applicable dollar amount of $17 for a taxable year beginning in a calendar year after 2024 and before 2027, rising after 2026 by an inflation adjustment factor measured from 2025, with $36 substituted for $17 in the case covered by subparagraph (B). Conforming cross reference changes follow in sections 45Q and 6417.
What the document actually says
“for any taxable year beginning in a calendar year after 2024 and before 2027, $17, and”
That sentence, in plain words
The figure is $17 for a tax year in 2025 or 2026.
What this is about
From 2027 it grows with prices. A different rule uses $36 in its place. The old split between uses is gone.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “shall apply”Who acts: Secretary of the TreasuryHow: statuteSec. 70522 in the PDF
What the document says
“The amendment made by subsection (a) shall apply to taxable years beginning after the date of enactment of this Act.”
The section applies the foreign entity bar to taxable years beginning after enactment and the parity changes to facilities or equipment placed in service after enactment.
What the document actually says
“The amendment made by subsection (a) shall apply to taxable years beginning after the date of enactment of this Act.”
That sentence, in plain words
The first change starts with tax years that begin after this law passed.
What this is about
The second turns on when gear is put to use. It must be put to use after this law. Both dates are fixed in the law.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
Each distinct thing the section does: bar the credit for a specified or foreign-influenced entity, put the different uses of qualified carbon oxide on the same footing with a single dollar amount, and fix the two effective dates.
The many conforming cross reference changes that follow from merging the two sets of dollar amounts.
The section works by amending sections 45Q and 6417 of the Internal Revenue Code of 1986 and points to sections 43 and 7701 of that Code, none of which is indexed here.
