Senate bill would incentivize carbon capture
The legislation would incentivize the development and use of carbon capture utilization and storage technologies and processes by extending the 45Q tax credit for carbon capture, utilization and sequestration and encouraging the use of CO2 in enhanced oil recovery.
The bill also seeks to increase the “commence construction” window for carbon capture projects from five to seven years and would increase the number of years to claim credits from 10 to 12 years.
Lawmakers said the legislation comes months after a group of industry, environmental, and labor groups sent an April letter to Senate Finance Committee leadership in support of extending the 45Q tax credit. Carbon capture technology could also help the U.S. reduce emissions and meet goals set within the Paris Agreement.