Source: United States Senator for Wyoming John Barrasso
Washington, D.C. – U.S. Senators Ben Ray Luján (D-N.M.) and John Barrasso (R-Wyo.) led the introduction of bipartisan legislation to enhance the federal Section 45Q tax credit to make it more accessible for carbon capture, direct air capture and carbon utilization projects of all sizes.
The bill increases the 45Q credit value for carbon capture projects at industrial facilities and power plants to incentivize wider adoption. It also eliminates the annual CO2 capture thresholds in the 45Q program to enable more facilities and industries to participate and qualify for the credit.
“America is the world’s leader of carbon capture technology, and we want to keep it that way,” said Barrasso. “In Wyoming and across America, carbon capture and other clean energy sources create jobs and grow our economy. The 45Q tax credit is already helping to spur innovation in the coal industry and create new technologies that transform carbon emissions into a useful product. Our bipartisan bill builds on this success by increasing the credit value and making it easier for projects of all sizes to take advantage of this important tax credit.”
“The bipartisan CATCH Act will help the United States reach net-zero emissions while creating thousands of new, good-paying jobs. This bipartisan legislation will create a commercialization pathway for hard-to-decarbonize industrial facilities and spur the deployment of emissions-capturing technology at power plants, which will be critical to meet international climate goals,” said Luján. “ By eliminating the threshold, this legislation will provide access to credit for new technologies, including the growing hydrogen industry in New Mexico. I’m proud to introduce this legislation to help lead on climate and build a clean energy economy.”
The 2018 reform and expansion of the 45Q tax credit has led to the development of more than 40 publicly announced projects to capture and manage emissions from industrial facilities, power plants, and from ambient air through direct air capture. Recent analyses by the Rhodium Group show that deployment of carbon capture and direct air capture projects and associated CO2 transport infrastructure will generate tens to hundreds of thousands of good-paying jobs.
By eliminating arbitrary thresholds, the Luján-Barrasso bill would foster greater carbon capture, direct air capture and carbon utilization project development, and technology innovation. According to recent Environmental Protection Agency (EPA) data, approximately 54 percent of power plants and 75 percent of industrial facilities fall below the current 45Q eligibility thresholds.
Full text of the legislation can be found HERE. Additional quotes of support can be found HERE.
The legislation is co-sponsored by U.S. Senators Tina Smith (D-Minn.), Chuck Grassley (R-Iowa), Chris Coons (D-Del.), Kevin Cramer (R-ND), and Debbie Stabenow (D-MI).
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