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This bill amends the Internal Revenue Code to eliminate federal tax credits for enhanced oil recovery (EOR) operations. Specifically, it repeals Section 43 of the tax code, which currently provides a credit for certain oil and gas production using tertiary injection methods. The bill also prevents the use of captured carbon dioxide as a tertiary injectant from qualifying for the Section 45Q carbon capture credit for facilities whose construction begins after enactment. These changes would end federal tax subsidies for enhanced oil recovery activities.
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