Legislation Would Allow PABs to Finance Carbon Capture, Make Industrial Emissions Eligible for 45Q Credit
U.S. Sens. Michael Bennet, D-Colorado, and Rob Portman, R-Ohio, Wednesday introduced legislation to allow the use of private activity bonds (PABs) for power plants and industrial facilities to purchase and install carbon capture and storage equipment and for direct air capture projects. The Carbon Capture Improvement Act (S. 1829) would also allow the existing Internal Revenue Code (IRC) Section 45Q tax credit for carbon sequestration to be used by facilities for industrial emissions. The use of PABs would be based on the percentage of carbon dioxide emissions that would be captured and injected underground. If 65% to 100% were captured, then the all of the equipment could be financed with PABs. When less than 65% was captured and sequestered, the pro-rated basis could be financed with PABs.
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