Carbon Capture Coalition Statement on Treasury Department Issuance of Request for Comments on Credit for Carbon Oxide Sequestration (45Q Tax Credit)
May 2, 2019 | News
The Carbon Capture Coalition applauds the Treasury Department and Internal Revenue Service for publishing a request for comments on the credit for carbon oxide sequestration (otherwise known as the 45Q tax credit). Coalition co-director Brad Crabtree issued the following statement:
“We are pleased that the Treasury Department and Internal Revenue Service have taken action to publish a request for public comments on the reformed and expanded 45Q tax credit for carbon capture, utilization, removal and storage.
“The 45Q tax credit was reformed and expanded as part of the Bipartisan Budget Act passed by Congress in February 2018 (known as the FUTURE Act). The tax credit is aimed at driving private investment in commercial deployment of technologies to capture carbon dioxide (CO2) and carbon monoxide (CO) from industrial facilities and power plants for storage through enhanced oil recovery (CO2-EOR) and in other geologic formations, as well as for the beneficial use of captured CO2 and CO to produce low-carbon fuels, chemicals, materials and other products.
“The Carbon Capture Coalition submitted model guidance for the implementation of the 45Q tax credit to the Treasury Department in November 2018. The model guidance reflects the consensus of the Coalition’s 60-plus companies, unions and NGOs and addresses some of the issues identified in the Treasury Department’s request for comments.
“The Coalition will carefully review the information provided in the Treasury Department’s request for comments and prepare additional guidance recommendations in response.
“It is our hope that the Treasury Department will receive robust and useful input during the 45-day comment period and then work quickly to complete and issue urgently-needed guidance or other regulations to provide the flexibility and financial certainty for carbon capture project developers and investors sought by congressional sponsors of the FUTURE Act, so that private capital can flow into projects that will reduce carbon emissions, create high-wage jobs and spur economic development.”