Powering Strong Communities

Senators introduce carbon capture, utilization and storage tax credit bill

A bipartisan group of 12 senators recently introduced the Carbon Capture, Utilization, and Storage Tax Credit Amendments Act of 2021.

The bill, S. 986, would expand eligibility for the 45Q credits by five years to projects that begin construction by the end of 2030. It also would allow direct payments of the credit to public power utility and electric cooperative owners.

The measure would more than double the credits for direct air capture projects, from $50 to $120 per metric ton for carbon dioxide captured and stored in saline geologic formations, and from $35 to $75 per ton for carbon dioxide stored geologically in oil and gas fields.

The American Public Power Association strongly supports the expansion to allow public power utilities to directly claim these credits.

Lead cosponsors of the bill are Sens. Tina Smith, D-Minn., and Senate Committee on Environment and Public Works ranking Republican Shelley Moore Capito, R-W.Va.

Also cosponsoring the bill are Senate Energy and Natural Resources Committee Chairman Joe Manchin, D-W.Va. and Ranking Member John Barasso, R-Wyoming and Sens. Chris Coons, D-Del., Kevin Cramer,R-N.D., Dick Durbin, D-Ill., Joni Ernst, R-Iowa, Chuck Grassley, R-Iowa, John Hoeven, R-N.D., Ben Ray Luján, D-N.M., Brian Schatz, D-Hawaii, and Sheldon Whitehouse, D-R.I.