U.S. Sen. Shelley Moore Capito (R-WV) on Dec. 8 sponsored a bipartisan bill to provide for a five-year extension of a tax credit to encourage carbon capture and storage projects that will create jobs and prevent carbon dioxide emissions.
The 45Q Carbon Capture Utilization and Storage (CCUS) Tax Credit Amendments Act of 2020, S. 4966, introduced by Sen. Capito and six original cosponsors, including U.S. Sens. Sheldon Whitehouse (D-RI) and John Hoeven (R-ND), would make targeted statutory changes to maximize use of the credit, which was enacted as part of the Bipartisan Budget Act of 2018.
The bill’s proposed narrow improvements would ensure that the credit is utilized to its full potential to create manufacturing, construction, and engineering jobs; preserve coal and natural gas jobs; and prevent carbon dioxide emissions while even facilitating the reduction of carbon dioxide that is already in the atmosphere, according to a one-page bill summary provided by Sen. Capito’s office.
“The 45Q CCUS Amendments Act reflects the targeted, consensus-based changes called for by our stakeholders,” Sen. Capito said. “These small modifications, following the models of previous energy policies that are supported by members of both parties for now well-established industries, will make a big difference in putting American innovation to work growing our economy and combating climate change in a responsible way, regardless of the current economic circumstances.”
If enacted, S. 4966 also would permit the 45Q credit to offset tax obligations due to the Base Erosion Avoidance Tax, and would allow for the direct payment of the credit, according to the bill summary.
“This legislation would make the 45Q and 48A tax credits more accessible and benefit our coal producers, helping them to better take advantage of these critical revenue streams through the implementation of CCUS technology,” said Sen. Hoeven. “These tax credits are a central part of our efforts to ensure our nation can reduce emissions while continuing to harness its abundant coal resources, which provide the affordable and reliable power that homes and businesses rely on every day.”