Enhanced Energy Recovery Act

S 5212, the Enhanced Energy Recovery Act, modifies tax credits for carbon dioxide capture and storage under IRS Section 45Q. It expands eligible uses to include carbon dioxide used as a "tertiary injectant" in oil or gas recovery projects (where it's injected to extract more oil while being stored underground). The bill sets a base tax credit of $17 per ton of captured carbon for 2025-2026, with future credits adjusted for inflation starting in 2027. These changes apply to taxable years beginning after December 31, 2024, directly affecting companies capturing and utilizing carbon dioxide for storage or oil recovery.