Congress extends and enhances carbon capture tax credit

Congress extends and enhances carbon capture tax credit

Included in the budget passed by Congress, the 45Q tax credits get extended and broadened to include more carbon capture activities

Cheyenne, Wyoming –Included in the two-year budget that was passed by Congress was a tax credit that will have a significant impact on Wyoming’s efforts to create a new carbon economy.

The language included was identical to the FUTURE Act, a bill that has bipartisan support in Congress, industry support and environmental groups support, and was co-sponsored by Wyoming Senator John Barrasso and Senators Heitkamp, Capito, and Whitehouse. The bill will extend the timeline for projects to qualify for, and claim the credit, increases the current credit values, and expands the types of projects that the credit can be used for, including utilization and direct air capture projects as well as storage and enhanced oil recovery.

These changes will provide more certainty for project developers and financers, which is crucial when looking at large-scale projects.

“The commercial deployment of carbon capture solutions needs an array of incentives to get early projects off the ground.  Today, Congress took an important step with the expansion of the 45Q tax credit, which will spur new investments in carbon management technologies,” said Jason Begger, Wyoming Infrastructure Authority’s Executive Director.

“This provision will drive interest in the types of technologies that can be developed at the Wyoming Integrated Test Center which is the largest post-combustion, coal-flue gas testing site in the country, and find real-world solutions to capturing carbon emissions. 45Q is significant for Wyoming as the state continues its leadership role in the development of new energy technologies.”

Find more information on 45Q here.