S. 3778

119 S3778 IS: Carbon Resource Innovation Act
 U.S. Senate
 2026-02-04
 text/xml
 EN
 Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
 II
 119th CONGRESS  2d Session
 S. 3778
 IN THE SENATE OF THE UNITED STATES
 February 4, 2026
  Mr. Sheehy  (for himself and  Ms. Cantwell ) introduced the following bill; which was read twice and referred to the  Committee on Finance
 A BILL
To amend the Internal Revenue Code of 1986 to expand the carbon oxide sequestration credit to include solid or liquid carbon capture facilities.
1.
Short title
This Act may be cited as the   Carbon Resource Innovation Act  .
2.
Expansion of carbon oxide sequestration credit to include solid or liquid carbon capture facilities
(a)
In general
 Section 45Q  of the Internal Revenue Code of 1986 is amended—
(1)
in subsection (c)(1)—
(A)
in subparagraph (B)(iii), by striking  or  at the end,
(B)
in subparagraph (C)(ii), by striking the period at the end and inserting  , or , and
(C)
by adding at the end the following new subparagraph:
(D)
in the case of a solid or liquid carbon capture facility, any carbon which—
(i)
is captured in liquid or solid form by carbon capture equipment,
(ii)
if not captured, would be expected to—
(I)
be released into the atmosphere by natural processes as an emission of greenhouse gas, or
(II)
lead to such release through a comparison system (as such term is used in Treasury Regulation section 1.45Q–4(c)(2)), and
(iii)
is measured at the source of capture and verified at the point of disposal, injection, or utilization.
 ,
(2)
in subsection (d)—
(A)
in the matter preceding paragraph (1), by striking  or direct air capture facility  and inserting  , direct air capture facility, or solid or liquid carbon capture facility , and
(B)
in paragraph (2)—
(i)
in subparagraph (B)(ii), by striking  or  at the end,
(ii)
by redesignating subparagraph (C) as subparagraph (D), and
(iii)
by inserting after subparagraph (B) the following new subparagraph:
(C)
in the case of a solid or liquid carbon capture facility, captures not less than 1,000 metric tons of qualified carbon oxide during the taxable year, or
 ,
(3)
in subsection (e)—
(A)
by redesignating paragraph (5) as paragraph (6), and
(B)
by inserting after paragraph (4) the following new paragraph:
(5)
Solid or liquid carbon capture facility
(A)
In general
The term  solid or liquid carbon capture facility  means any facility which uses carbon capture equipment to capture carbon in solid or liquid form that would otherwise be released into the atmosphere as a carbon oxide, including a facility which results in a net reduction of carbon when compared to a comparison system (as described in Treasury Regulation section 1.45Q–4(c)(2)).
(B)
Other terms
With respect to a facility described in subparagraph (A)—
(i)
the term  capture  means, with respect to carbon, the process which enables disposal, injection, or utilization of such carbon, and
(ii)
the term  carbon capture equipment  means any equipment used at such facility.
  , and
(4)
in subsection (f)—
(A)
in paragraph (2), by inserting  , and in the case of solid or liquid carbon capture facilities, shall also include underground storage chambers under such conditions that the carbon does not escape into the atmosphere  after  under such regulations , and
(B)
by adding at the end the following new paragraph:
(11)
Carbon captured by solid or liquid carbon capture facility
For purposes of this section, the amount of carbon which is captured by the taxpayer at a solid or liquid carbon capture facility shall be equal to the carbon dioxide equivalent of the metric tons of carbon which are measured at the source of capture and verified at the point of disposal, injection, or utilization.
 .
(b)
Effective date
The amendments made by this section shall apply to carbon captured after the date of enactment of this Act.