The End Polluter Welfare for Enhanced Oil Recovery Act of 2026 eliminates two tax credits that benefit oil companies using carbon dioxide for enhanced oil recovery. Specifically, the bill removes the Enhanced Oil Recovery credit under Section 43 of the tax code, which has historically allowed oil producers to claim tax benefits when injecting carbon dioxide into oil fields to increase extraction. The bill also eliminates the ability to claim a carbon oxide credit for facilities that begin construction after the bill's enactment when that carbon is used for enhanced oil recovery purposes. These changes apply to tax years beginning after the bill becomes law, effectively ending what the bill's sponsors view as subsidies to the oil industry. The legislation does not authorize new spending or establish specific funding amounts, instead functioning as a tax code amendment to close existing tax credits.
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