hold on there's just too much going on in Congress lmao...
Ends tax credits for using carbon to extract more oil.
Senator Merkley (D-OR) and 5 co-sponsors introduced it.
Introduced in the Senate, referred to committee.
This bill seeks to eliminate two types of tax credits related to oil extraction. First, it ends the ability for new facilities to claim carbon capture tax credits when the captured carbon is used for enhanced oil recovery. Second, it completely removes a separate tax credit specifically designed for enhanced oil recovery methods. The bill was introduced by Senator Jeff Merkley, a Democrat from Oregon, along with five other Senators, and has been sent to the Senate Finance Committee for review. This is an early stage in the legislative process.
Introduced Mar 26, 2026
This bill was introduced in the Senate on March 26, 2026. It has been referred to the Senate Committee on Finance for consideration. Before it can move forward, the committee must review and approve it. If it passes the committee, it would then need to be voted on by the full Senate. If it passes the Senate, it would then go to the House of Representatives for their consideration, and ultimately to the President to become law.
If this bill becomes law, companies that extract oil would no longer be able to claim a tax credit for new projects that inject captured carbon dioxide into oil fields to extract more oil. Additionally, a standalone tax credit that supports enhanced oil recovery techniques would be entirely removed. These changes could make certain oil extraction methods more expensive for companies, potentially influencing their operational decisions and investment in new projects.
Supporters Say
Proponents argue it ends taxpayer subsidies for fossil fuel production.
Critics Say
Critics might argue it increases costs for oil producers, impacting energy supply.
Supporters of this bill would likely argue that it aligns with efforts to reduce reliance on fossil fuels by ending government incentives that indirectly support oil production. They may view these tax credits as 'polluter welfare' that should be eliminated. Critics might contend that removing these tax credits could discourage domestic oil production, potentially leading to higher energy costs or impacting the utilization of carbon capture technologies if enhanced oil recovery is a key application for the captured CO2.