Inflation Reduction Act of 2022

The IRA makes major enhancements to the 45Q tax credit, increasing credit values (eg. to $85/ton for industrial/power capture and $180/ton for direct air capture) and extending the construction commencement deadline to January 1, 2033, to give projects more time and certainty. It adds a direct pay option so awardees can receive the full credit value in cash rather than relying on traditional tax equity. The Act also expands transferability of credits, lowering capture thresholds for many project types so more facilities qualify. Explore the full fact sheet to see how these changes could scale US carbon capture and removal to ambitious climate goals.