Restrictions on carbon oxide sequestration credit

(a) Restrictions relating to prohibited foreign entities Section 45Q(f) is amended by adding at the end the following new paragraph: (10) Restrictions relating to prohibited foreign entities 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— (A) a specified foreign entity (as defined in section 7701(a)(51)(B)), or (B) a foreign-influenced entity (as defined in section 7701(a)(51)(D), determined without regard to clause (i)(II) thereof).. (b) Parity for different uses and utilizations of qualified carbon oxide Section 45Q 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: (B) (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)., and (C) by striking paragraph (4), (2) in subsection (b)— (A) in paragraph (1)— (i) by striking subparagraph (A) and inserting the following: (A) In general 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., 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). (c) Conforming amendment Section 6417(d)(3)(C)(i)(II)(bb) is amended by striking paragraph (3)(A) or (4)(A) of section 45Q(a) and inserting section 45Q(a)(3)(A). (d) Effective dates (1) Restrictions relating to prohibited foreign entities The amendment made by subsection (a) shall apply to taxable years beginning after the date of enactment of this Act. (2) Parity for different uses and utilizations of qualified carbon oxide The amendments made subsections (b) and (c) shall apply to facilities or equipment placed in service after the date of enactment of this Act.

(a) Restrictions relating to prohibited foreign entities Section 45Q(f) is amended by adding at the end the following new paragraph: (10) Restrictions relating to prohibited foreign entities 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— (A) a specified foreign entity (as defined in section 7701(a)(51)(B)), or (B) a foreign-influenced entity (as defined in section 7701(a)(51)(D), determined without regard to clause (i)(II) thereof).. (b) Parity for different uses and utilizations of qualified carbon oxide Section 45Q 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: (B) (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)., and (C) by striking paragraph (4), (2) in subsection (b)— (A) in paragraph (1)— (i) by striking subparagraph (A) and inserting the following: (A) In general 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., 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). (c) Conforming amendment Section 6417(d)(3)(C)(i)(II)(bb) is amended by striking paragraph (3)(A) or (4)(A) of section 45Q(a) and inserting section 45Q(a)(3)(A). (d) Effective dates (1) Restrictions relating to prohibited foreign entities The amendment made by subsection (a) shall apply to taxable years beginning after the date of enactment of this Act. (2) Parity for different uses and utilizations of qualified carbon oxide The amendments made subsections (b) and (c) shall apply to facilities or equipment placed in service after the date of enactment of this Act.