Although disappointed in the two years it took to happen, U.S. Sen. Shelley Moore Capito (R-WV) last week applauded new regulatory guidance from the Internal Revenue Service (IRS) related to the 45Q tax credit for carbon capture, utilization and storage (CCUS), which is essential technology for reducing carbon emissions while growing U.S. jobs.
Sen. Capito in July 2017 joined a bipartisan contingent of senators to introduce the Furthering Carbon Capture, Utilization, Technology, Underground Storage, and Reduced Emissions (FUTURE) Act, which was signed into law in February 2018 to expand and enhance the 45Q tax credit for CCUS activities. The measure required the IRS’s newly updated regulatory guidance to facilitate the implementation of the tax credit, according to the senator.
“The issues involved in implementing the FUTURE Act are certainly complicated, but the loss of two years waiting on guidance has delayed projects from breaking ground and getting this technology out into the field, and so this regulatory guidance should have been issued sooner,” Sen. Capito said on May 29. “That said, I thank Secretary Mnuchin and his staff for largely following congressional intent and the recommendations of our bipartisan comment letter in this guidance document.”
Sen. Capito added that the implementation of 45Q will help encourage American competitiveness in a growing and competitive global market for CCUS technologies and will positively impact domestic energy, manufacturing and construction jobs.
“As we more fully review this technical document, I will continue working with my colleagues and stakeholders to ensure the credit’s benefits are as impactful as possible and stakeholders can finally get off the sidelines and get to work,” she said.
Sen. Capito, who serves on the U.S. Senate Environment and Public Works Committee, has long been a leader in advocating for a national energy policy focused on domestic energy production and distribution to reduce dependence on foreign oil, the deployment of advanced technologies in the marketplace, and informed environmental regulation, according to her staff.