Carbon Capture Coalition to Lawmakers: Implement Direct Pay and Multiyear 45Q Extension
November 17, 2020 | News
The Carbon Capture Coalition sent a letter to the House Ways and Means and Senate Finance Committees, encouraging the advancement of direct pay and multiyear extension of 45Q during the lame duck session. Enacting a direct pay provision and multiyear extension of 45Q remain the Coalition’s top two legislative priorities and have received bipartisan support this year.
Allowing 45Q tax credit recipients to receive a direct cash payment from the Treasury will alleviate the need to rely on tax equity markets. Not only are tax equity markets constrained by the current COVID-19-induced economic and market crisis, carbon capture projects remain more challenging to finance than incumbent low and zero-carbon technologies, and tax equity transactions are complex, inefficient and costly for developers of such projects.
Additionally, a multiyear extension of the 45Q commence construction window will ensure that projects, both announced and under development, continue to move forward despite near-term economic and market headwinds. A multiyear extension will also provide long-term certainty for private investment in commercial deployment of carbon capture technologies in the marketplace. Click here to read the Coalition’s letter to House Ways and Means and Senate Finance Committees.
Click here to read the Coalition’s letter to House Ways and Means and Senate Finance Committees.