(a) In general.—Section 7704(d)(1)(E) is amended—
(1) by striking “income and gains derived from the exploration” and inserting the following: “income and gains derived from—
“(i) the exploration”.
(2) by inserting “or” before “industrial source”, and
(3) by striking “or the transportation or storage” and all that follows and inserting the following:
“(ii) the transportation or storage of—
“(I) any fuel described in subsection (b), (c), (d), (e), or (k) of section 6426, or any alcohol fuel defined in section 6426(b)(4)(A) or any biodiesel fuel as defined in section 40A(d)(1) or sustainable aviation fuel as defined in section 40B(d)(1), or
“(II) liquified hydrogen or compressed hydrogen,
“(iii) in the case of a qualified facility (as defined in section 45Q(d), without regard to any date by which construction of the facility or equipment is required to begin) not less than 50 percent of the total carbon oxide production of which is qualified carbon oxide (as defined in section 45Q(c))—
“(I) the generation, availability for such generation, or storage of electric power at such facility, or
“(II) the capture of carbon dioxide by such facility,
“(iv) the production of electricity from any advanced nuclear facility (as defined in section 45J(d)(2)),
“(v) the production of electricity or thermal energy exclusively using a qualified energy resource described in subparagraph (D) or (H) of section 45(c)(1), or
“(vi) the operation of energy property described in clause (iii) or (vii) of section 48(a)(3)(A) (determined without regard to any requirement under such section with respect to the date on which construction of property begins).”.
(b) Effective date.—The amendments made by this section shall apply to taxable years beginning after December 31, 2025.