End Polluter Welfare for Enhanced Oil Recovery Act of 2026

This bill, the End Polluter Welfare for Enhanced Oil Recovery Act of 2026, removes tax incentives for enhanced oil recovery projects that use carbon dioxide as an injectant. It directly affects oil and gas companies and energy producers who build qualified facilities after the law is enacted. The legislation eliminates the tax credit for carbon capture and storage when the captured carbon dioxide is used to extract more oil from existing wells. Additionally, the bill repeals the federal enhanced oil recovery tax credit that previously allowed companies to deduct certain costs related to extracting additional oil from mature wells. These changes apply to taxable years beginning after the bill is enacted.