Carbon Capture technologies offer the capability to continue relying on all of our nation's vast energy resources while also improving environmental stewardship and reducing emissions.
The Internal Revenue Service guidelines for accessing the 45Q tax credit don't properly reflect regulations for Carbon Capture at the Environmental Protective Service unnecessarily increasing costs and holding back the development and use of this technology.
As the Internal Revenue Service is in the process of implementing the recently expanded and extended 45Q tax credit, I believe this is the best opportunity to provide ongoing certainty and regulatory flexibility for project developers and to make Carbon Capture technology more commercially viable.
You need to continue to work with the Internal Revenue Service and through the legislative process to ensure that the 45Q tax credit more effectively advances Carbon Capture technology.
Under current regulations, energy companies are unsure if they can take advantage of the 45Q tax credit.
This legislation aligns Treasury's regulations with the Environmental Protection Agency's, which will provide much-needed clarity and consistency for energy stakeholders.
If 45Q is going to successfully incentivize carbon capture, it must be applicable to all producers who participate, not just a select few.