Lawmakers seeking to simultaneously boost energy production and reduce carbon emissions are urging House leaders to adopt a tax package providing incentives for the implementation of carbon sequestration. Rep. Mike Conaway, R-Texas, led a bipartisan group of 43 members of Congress calling on House Speaker Paul Ryan, R-Wis., Minority Leader Nancy Pelosi, D-Calif., House Ways and Means Committee Chairman Kevin Brady, R-Texas, and Committee on Ways and Means Ranking Member Richard Neal, D-Mass., to include H.R. 3761, the Carbon Capture Act, in any upcoming tax extenders package.
Conaway introduced the Carbon Capture Act in September 2017 as a companion to the Senate's proposals amending the 45Q tax provision. The changes would allow for greater financial certainty for carbon capture projects.
"Due to long lead times for construction and development of these projects, the current structure of the credit has, in effect, all but rendered it expired," the letter stated. "This lack of certainty has deterred private investment and halted construction of new projects."
Lawmakers hope the modifications in HR 3761 will provide assurance to carbon sequestration investors. The legislation would extend the provision to 2025 and improve upon the current tax credit by allowing broader eligibility.
Carbon capture, utilization, and storage technologies are noted for their ability to clean up otherwise dirty energy by storing the carbon dioxide byproduct underground. The method is said to reduce greenhouse gas emissions by 90 percent.