End Polluter Welfare for Enhanced Oil Recovery Act of 2026

This bill proposes significant changes to the Internal Revenue Code by targeting tax credits associated with enhanced oil recovery (EOR). Its primary goal is to eliminate financial incentives for these activities. Specifically, the bill repeals the existing enhanced oil recovery credit , found under Section 43 of the Code, which currently provides tax benefits for certain EOR projects. Additionally, the legislation amends Section 45Q to discontinue the carbon capture tax credit for carbon oxide used as a tertiary injectant in EOR. This particular change applies to any qualified facility whose construction begins after the bill's enactment, effectively ending this specific credit for new EOR operations. The bill also includes numerous conforming amendments to ensure that all references to the repealed enhanced oil recovery credit are updated throughout the tax code. All amendments made by this bill will take effect for taxable years beginning after its enactment.