Reps. Miller, Schweikert, Wenstrup Introduce Legislation to Improve Carbon Capture Tax Credit As Part of GOP Energy Innovation Agenda

Press Release

Congresswoman Carol Miller (R-WV) joined fellow Ways and Means Republican Reps. David Schweikert (R-AZ) and Brad Wenstrup (R-OH) to introduce legislation as part of House Republicans' new Energy Innovation Agenda. The bill, which is supported by House Minority Leader Kevin McCarthy (R-CA), would improve and permanently extend 45Q, the tax credit for carbon capture and sequestration, to encourage increased investment in carbon capture technologies, decrease carbon emissions, and create new jobs.

The Energy Innovation Agenda is a House Republican effort to boost investment in America's energy industry through increased research and development in clean and efficient technologies, the build up of our energy infrastructure, and outlining solutions for conservation.

"Carbon capture is a revolutionary technology that will propel our nation's natural resource production forward," said Congresswoman Miller. "This legislation incentivizes further research and development into an important technology that can help solidify America as an efficient energy exporter and create more jobs here at home. As America looks to invest in innovative energy solutions, we must invest in carbon capture."

"I am proud to be part of this effort to promote responsible carbon removal technology, and help industry reduce our carbon footprint on a larger scale," said Congressman Schweikert. "By improving and permanently extending 45Q, businesses will have the ability to continue adapting and expanding technological advancements to capture and sequester carbon. This legislation also makes significant strides in helping companies who are capturing carbon directly from the air better utilize the tax credit, getting us closer to scalable technology that will clean our environment and drive the economy forward."

"Our legislation will help take more pollution out of the air as well as boost the economy without jeopardizing jobs or driving up energy costs for hardworking American families and businesses. It will help more companies enter the carbon capture market by creating certainty and predictability as well as by expanding access to the tax credit," said Congressman Wenstrup. "By incentivizing the private sector to invest in new technology, we can continue meeting our climate goals and solidifying America's role as the leading exporter of climate solutions. I'm proud to lead this effort with Representatives Schweikert and Miller."

Congresswoman Miller additionally outlined her goals for increased energy innovation in a blog post for the Energy Innovation Agenda rollout. Congresswoman Miller wrote, "The United States is blessed with abundant natural resources, giving us the unique ability to power the world. If utilized and transported effectively, our ample supplies of coal, liquefied natural gas (LNG), and oil can position the United States as a leader in international energy exportation while also playing a crucial role in reducing global emissions."

Background:
This bill would provide private industry with more certainty around the temporary credit that is currently set to expire in 2025 by:

Making the 45Q tax credit permanent;
Increasing the value of the credit for direct air capture operations from $35 to $50 per ton for carbon sequestered as part of enhanced oil and gas recovery, and for other sequestered carbon, increasing the value of the credit from $50 to $85 per ton;
Increasing the payout term of the credit from 12 to 20 years; and
Reducing the amount of Carbon that must be sequestered by different projects in order to qualify for the tax credit.

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