For inflation adjustment of certain items in this section, see Internal Revenue Notices listed in a table below.

The date of the enactment of the Bipartisan Budget Act of 2018 and the date of the enactment of such Act, referred to in text, is the date of enactment of Pub. L. 115–123, which was approved Feb. 9, 2018.

The date of enactment of this paragraph, referred to in subsec. (f)(10), is the date of enactment of Pub. L. 119–21, which was approved July 4, 2025.

2025—Subsec. (a)(3)(B). Pub. L. 119–21, § 70522(b)(1)(B), added subpar. (B) and struck out former subpar. (B) which read as follows: “disposed of by the taxpayer in secure geological storage and not used by the taxpayer as described in paragraph (4)(B), and”.

Subsec. (a)(4). Pub. L. 119–21, § 70522(b)(1)(A), (C), struck out par. (4) which read as follows: “the applicable dollar amount (as determined under subsection (b)(1)) per metric ton of qualified carbon oxide which is—

“(A) captured by the taxpayer using carbon capture equipment which is originally placed in service at a qualified facility on or after the date of the enactment of the Bipartisan Budget Act of 2018, during the 12-year period beginning on the date the equipment was originally placed in service, and

“(B)(i) 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

“(ii) utilized by the taxpayer in a manner described in subsection (f)(5).”

Subsec. (b)(1)(A). Pub. L. 119–21, § 70522(b)(2)(A)(i), added subpar. (A) and struck out former subpar. (A). Prior to amendment, text read as follows: “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 2016 and before 2027—

“(I) for purposes of paragraph (3) of subsection (a), $17, and

“(II) for purposes of paragraph (4) of such subsection, $12, and

“(ii) for any taxable year beginning in a calendar year after 2026—

“(I) for purposes of paragraph (3) of subsection (a), 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) for purposes of paragraph (4) of such subsection, an amount equal to the product of $12 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’.”

Subsec. (b)(1)(B). Pub. L. 119–21, § 70522(b)(2)(A)(ii), substituted “shall be applied by substituting ‘$36’ for ‘$17’ each place it appears.” for “shall be applied—

“(i) by substituting ‘$36’ for ‘$17’ each place it appears, and

“(ii) by substituting ‘$26’ for ‘$12’ each place it appears.”

Subsec. (b)(2)(B). Pub. L. 119–21, § 70522(b)(2)(B), substituted “paragraph (3)(A)” for “paragraphs (3)(A) and (4)(A)” in introductory provisions.

Subsec. (b)(3). Pub. L. 119–21, § 70522(b)(2)(C), substituted “the dollar amount applicable under paragraph (3)” for “the dollar amounts applicable under paragraph (3) or (4)”.

Subsec. (f)(5)(B)(i). Pub. L. 119–21, § 70522(b)(3)(A), substituted “(3)(B)(iii)” for “(4)(B)(ii)” in introductory provisions.

Subsec. (f)(9). Pub. L. 119–21, § 70522(b)(3)(B), substituted “subsection (a)(3)” for “paragraphs (3) and (4) of subsection (a)” in introductory provisions.

Subsec. (f)(10). Pub. L. 119–21, § 70522(a), added par. (10).

Subsec. (h)(3)(A)(ii). Pub. L. 119–21, § 70522(b)(4), substituted “subsection (a)(3)(A)” for “paragraph (3)(A) or (4)(A) of subsection (a)”.

2022—Subsec. (b)(1)(A). Pub. L. 117–169, § 13104(c)(2)(A), substituted “Except as provided in subparagraph (B) or (C), the applicable dollar amount” for “The applicable dollar amount” in introductory provisions.

Subsec. (b)(1)(A)(i)(I). Pub. L. 117–169, § 13104(b)(1)(A), substituted “$17” for “the dollar amount established by linear interpolation between $22.66 and $50 for each calendar year during such period”.

Subsec. (b)(1)(A)(i)(II). Pub. L. 117–169, § 13104(b)(1)(B), substituted “$12” for “the dollar amount established by linear interpolation between $12.83 and $35 for each calendar year during such period”.

Subsec. (b)(1)(A)(ii)(I). Pub. L. 117–169, § 13104(b)(2)(A), substituted “$17” for “$50”.

Subsec. (b)(1)(A)(ii)(II). Pub. L. 117–169, § 13104(b)(2)(B), substituted “$12” for “$35”.

Subsec. (b)(1)(B), (C). Pub. L. 117–169, § 13104(c)(1)(B), added subpars. (B) and (C). Former subpar. (B) redesignated (D).

Subsec. (b)(1)(D). Pub. L. 117–169, § 13104(c)(2)(B), substituted “subparagraph (A), (B), or (C)” for “subparagraph (A)”.

Pub. L. 117–169, § 13104(c)(1)(A), redesignated subpar. (B) as (D).

Subsec. (d). Pub. L. 117–169, § 13104(a)(1), amended subsec. (d) generally. Prior to amendment, subsec. (d) defined qualified facility.

Subsec. (e). Pub. L. 117–169, § 13104(a)(2)(A), added pars. (1) and (2) and redesignated former pars. (1) to (3) as (3) to (5), respectively.

Subsec. (f)(3). Pub. L. 117–169, § 13104(e)(1), struck out par. (3) which had appeared after par. (7) and related to credit reduced for certain tax-exempt bonds.

Subsec. (f)(8). Pub. L. 117–169, § 13104(e)(2), added par. (8).

Subsec. (f)(9). Pub. L. 117–169, § 13104(g), added par. (9).

Subsec. (g). Pub. L. 117–169, § 13104(f), inserted “the earlier of January 1, 2023, and” before “the end of the calendar year” in introductory provisions.

Subsecs. (h), (i). Pub. L. 117–169, § 13104(d), added subsec. (h) and redesignated former subsec. (h) as (i).

Subsec. (i)(3). Pub. L. 117–169, § 13104(h), added par. (3).

2021—Subsec. (f)(3). Pub. L. 117–58 added par. (3) relating to credit reduced for certain tax-exempt bonds at end of subsec. (f).

2020—Subsec. (d)(1). Pub. L. 116–260 substituted “January 1, 2026” for “January 1, 2024” in introductory provisions.

2018—Pub. L. 115–123 amended section generally. Prior to amendment, section related to credit for carbon dioxide sequestration.

2014—Subsec. (d)(2). Pub. L. 113–295 substituted “Administrator of the Environmental Protection Agency, the Secretary of Energy, and the Secretary of the Interior, shall establish” for “Administrator of the Environmental Protection Agency the Secretary of Energy, and the Secretary of the Interior,, shall establish”.

2009—Subsec. (a)(1)(B). Pub. L. 111–5, § 1131(b)(2), inserted “and not used by the taxpayer as described in paragraph (2)(B)” after “storage”.

Subsec. (a)(2)(C). Pub. L. 111–5, § 1131(a), added subpar. (C).

Subsec. (d)(2). Pub. L. 111–5, § 1131(b)(1), inserted “the Secretary of Energy, and the Secretary of the Interior,” after “Environmental Protection Agency” and substituted “paragraph (1)(B) or (2)(C) of subsection (a)” for “subsection (a)(1)(B)” and “, oil and gas reservoirs, and unminable coal seams” for “and unminable coal seems”.

Subsec. (e). Pub. L. 111–5, § 1131(b)(3), substituted “taken into account in accordance with subsection (a)” for “captured and disposed of or used as a tertiary injectant”.

Pub. L. 119–21, title VII, § 70522(d), July 4, 2025, 139 Stat. 280, provided that:

Pub. L. 117–169, title I, § 13104(i), Aug. 16, 2022, 136 Stat. 1929, provided that:

Pub. L. 117–58, div. H, title IV, § 80402(f), Nov. 15, 2021, 135 Stat. 1334, provided that: “The amendments made by this section [amending this section and sections 141, 142, and 146 of this title] shall apply to obligations issued after December 31, 2021.”

Pub. L. 115–123, div. D, title II, § 41119(b), Feb. 9, 2018, 132 Stat. 168, provided that: “The amendment made by this section [amending this section] shall apply to taxable years beginning after December 31, 2017.”

Amendment by Pub. L. 113–295 effective as if included in the provisions of the American Recovery and Reinvestment Tax Act of 2009, Pub. L. 111–5, div. B, title I, to which such amendment relates, see section 209(k) of Pub. L. 113–295, set out as a note under section 24 of this title.

Pub. L. 111–5, div. B, title I, § 1131(c), Feb. 17, 2009, 123 Stat. 325, provided that: “The amendments made by this section [amending this section] shall apply to carbon dioxide captured after the date of the enactment of this Act [Feb. 17, 2009].”

Section applicable to carbon dioxide captured after Oct. 3, 2008, see section 115(d) of Pub. L. 110–343, set out as an Effective Date of 2008 Amendment note under section 38 of this title.

Provisions relating to inflation adjustment of items in this section for certain years were contained in the following:

2024—Internal Revenue Notice 2024–39.

2023—Internal Revenue Notice 2023–46.

2022—Internal Revenue Notice 2022–38.

2021—Internal Revenue Notice 2021–35.

2020—Internal Revenue Notice 2020–40.

2019—Internal Revenue Notice 2019–31.

2018—Internal Revenue Notice 2018–40.

2017—Internal Revenue Notice 2017–32.

2016—Internal Revenue Notice 2016–53.

2015—Internal Revenue Notice 2015–44.

2014—Internal Revenue Notice 2014–40.

2013—Internal Revenue Notice 2013–34.

2012—Internal Revenue Notice 2012—42.

2011—Internal Revenue Notice 2011–50.

2010—Internal Revenue Notice 2010–75.