H.R.1946 - 45Q Repeal Act of 2025 (119th Congress)
Summary
H.R. 1946, the 45Q Repeal Act of 2025, aims to eliminate the carbon oxide sequestration credit, also known as the 45Q tax credit. This credit, established within the Internal Revenue Code, incentivizes the capture and sequestration of carbon oxide. The bill proposes to amend the Internal Revenue Code of 1986 by repealing section 45Q and making conforming amendments to other sections that reference it.
Expected Effects
The repeal of the 45Q credit would likely reduce investment in carbon capture and sequestration technologies. This could slow down the development and deployment of these technologies, potentially impacting efforts to reduce carbon emissions. The bill also includes amendments to other sections of the tax code to remove references to the repealed 45Q credit, ensuring consistency.
Potential Benefits
- Could lead to a reassessment of climate change mitigation strategies, potentially favoring alternative approaches.
- May reduce complexity in the tax code by eliminating a specific credit.
- Could free up government resources for other environmental or economic initiatives.
- May encourage innovation in carbon capture technologies that are economically viable without government subsidies.
- Could reduce potential market distortions caused by the tax credit.
Most Benefited Areas:
Potential Disadvantages
- May discourage investment in carbon capture and sequestration projects.
- Could hinder efforts to reduce carbon emissions from industrial sources.
- May negatively impact companies and industries that rely on the 45Q credit.
- Could slow down the development and deployment of carbon capture technologies.
- May lead to job losses in the carbon capture industry.
Constitutional Alignment
The bill falls under the purview of Congress's power to lay and collect taxes, duties, imposts, and excises, as outlined in Article I, Section 8, Clause 1 of the Constitution. The repeal of a tax credit is a legitimate exercise of this power. There are no apparent constitutional conflicts related to individual rights or federalism.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).