One Big Beautiful Bill Act (H.R. 1)

The One Big Beautiful Bill Act (OBBBA), signed into law on July 3, 2025, updates and enhances the federal Section 45Q tax credit for carbon capture. It raises the credit to $85/ton for industrial capture and $180/ton for direct air capture, applying only to projects placed in service after enactment. The bill also introduces restrictions excluding certain foreign-influenced entities from claiming the credit.