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Federal Legislation Introduced to Create Parity for Carbon Capture Credit for Use, Sequestration

Wednesday, March 1, 2023 - 12:45PM

Sens. Sheldon Whitehouse, D-Rhode Island, and Bill Cassidy, R-Louisiana, today introduced legislation to create parity between the credit value in the Internal Revenue Code (IRC) Section 45Q for use and sequestration of the carbon capture tax credit. S. 542, The Carbon Capture Utilization Parity Act, would increase the value for direct air capture use of carbon to $180 per metric ton and increase the value for power and industrial sector use to $85 per metric ton. Those amounts would equal the incentives for carbon capture and sequestration. The bill was also introduced in the House of Representatives as H.R. 1262. The text of the legislation was not yet available, but Whitehouse’s office released a summary of the legislation.

Use and expansion of clean energy incentives will be a topic at the Novogradac 2023 Spring Renewable Energy and Environmental Tax Credits Conference, May 18-19 in San Diego.

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