End Polluter Welfare for Enhanced Oil Recovery Act of 2026

This bill, titled the "End Polluter Welfare for Enhanced Oil Recovery Act of 2026," eliminates federal tax credits related to enhanced oil recovery (EOR). It directly affects oil and gas companies that utilize or plan to utilize EOR methods. Specifically, the bill strikes Section 43 of the Internal Revenue Code, thereby ending the existing Enhanced Oil Recovery Credit. Furthermore, for new facilities constructed after the bill's enactment, it removes eligibility for the carbon capture tax credit (Section 45Q) when captured carbon oxide is used for enhanced oil recovery. These changes discontinue tax incentives that support specific oil extraction techniques.