45Q Tax Credit for Carbon Capture Projects

The federal section 45Q tax credit gives financial incentives for projects that capture carbon, whether from industrial sources, power generation, or directly from the atmosphere, and either store it securely underground or reuse it in low‑carbon products. Updated rates offer $85/ton for industrial/power capture or reuse, and $180/ton for direct air capture, with eligibility expanding via lower annual capture thresholds. Additional features like credit transferability, prevailing wage/apprenticeship requirements, and a construction deadline help provide certainty, fairness, and broader access. Check the full primer to understand the full scope of rules, thresholds, and opportunities under Section 45Q.