Carbon Capture Coalition Statement on 45V Guidance and Next Steps for 45Q Guidance
December 22, 2023 | News
This statement regarding the issuance of guidance on the federal Section 45V tax credit and its relevance for yet-to-be-issued Section 45Q tax credit guidance may be attributed to Jessie Stolark, Executive Director of the Carbon Capture Coalition:
“The U.S. Treasury Department is undertaking the enormous task of developing guidance to implement changes to existing tax credits and issue guidance for new tax credits established as part of the Inflation Reduction Act. The Carbon Capture Coalition is pleased to see the agency making significant progress on the large swath of clean energy and industrial tax credits created and reformed under the law. Today’s notice of proposed rulemaking (NPRM) for the federal Section 45V tax credit marks an important step toward fully implementing the most consequential climate and energy policy ever enacted in the nation’s history. We look forward to the Treasury Department now focusing on implementing 45Q enhancements enacted as part of the law.
“Finalizing 45Q guidance on the most recent enhancements to the tax credit passed under the leadership of the 117th Congress will be essential to provide the certainty necessary for climate-essential carbon management projects to move forward in securing project financing and breaking ground on construction. Commercial-scale projects are capital- and time-intensive, and financial institutions are less familiar with them than other clean energy technologies. Clear and workable guidance is essential to give these projects a runway to meet the 2033 commence-construction deadline.
“As the national collaborative of industry, labor, and nonprofits working to enact and implement federal policies to deploy carbon management technologies economywide to meet net zero emissions reductions and associated climate goals, the Coalition is focused on federal policies and regulatory efforts that will spur the deployment of the full suite of carbon management technologies. While the Coalition does not specifically work on policies aimed at supporting hydrogen production, we recognize that carbon management can be an enabler of low-cost, low-carbon hydrogen production for end uses in industrial processes or production of the basic building blocks of modern society.
“With the release of today’s NPRM, we look forward to prompt action from the U.S. Department of Treasury to provide the necessary guidance on recent enhancements to the 45Q tax credit for these projects to move forward and keep 2050 emissions reductions and temperature targets within reach.”
The Carbon Capture Coalition is a nonpartisan collaboration of more than 100 companies, unions, conservation and environmental policy organizations, building federal policy support to enable economywide, commercial scale deployment of carbon management technologies. This includes carbon capture, removal, transport, reuse, and storage from industrial facilities, power plants, and ambient air. Members of the Coalition work together to advocate for the full portfolio of policies required to commercialize a domestic carbon management sector and inform policymakers as well as stakeholders on the essential role this suite of technologies must play in achieving these shared objectives.