End Polluter Welfare Act of 2025

Key Points

• This bill would eliminate dozens of tax breaks, credits, and deductions that benefit oil, natural gas, and coal companies. It targets everything from the enhanced oil recovery credit to percentage depletion allowances and intangible drilling cost deductions, forcing fossil fuel companies to pay significantly more in federal taxes.
• Companies drilling or mining on public lands would face higher royalty rates. The bill raises onshore royalty rates for coal from 12.5% to 18.75% and locks in the 18.75% rate for offshore oil and gas leases, while permanently banning royalty relief for offshore leases.
• The Department of Energy's Office of Fossil Energy and Carbon Management would be shut down, and all its unspent money would be taken back. Federal agencies like the Export-Import Bank, USAID, and the Development Finance Corporation would be banned from funding any fossil fuel projects.
• The bill would end the 45Q tax credit for carbon capture and sequestration and require the Treasury Department to publicly disclose which companies have claimed the credit and how much they received. It also tightens rules for the clean hydrogen production credit to require renewable electricity only.
• It repeals fossil fuel-friendly provisions from the Inflation Reduction Act and the One Big Beautiful Bill Act, including mandatory offshore lease sales, oil and gas permitting reforms under NEPA, and the congressional disapproval of EPA methane emissions rules.
• Liability caps for offshore oil spills would be removed, making companies fully responsible for all cleanup costs. The excise tax that funds the Black Lung Disability Trust Fund for sick coal miners would be increased from $1.10 to $1.38 per ton.