More than 160 companies, power providers and other carbon capture backers pressed congressional leaders to defend one of the sector’s preeminent incentives amid concerns that Republicans could repeal parts of former President Joe Biden’s signature climate law.
“[We] respectfully urge Congress to protect the widely supported, bipartisan investments made in the 45Q tax credit,” the groups said in a letter Tuesday to House and Senate leaders.
The 45Q credit, named after its section in the U.S. tax code, is a primary incentive for industries that are looking to slash emissions of carbon dioxide. Developers of carbon capture and storage (CCS) projects, as well as those that pull carbon dioxide from the atmosphere, can claim 45Q for each metric ton of the climate-warming gas that’s trapped and sequestered.
The letter comes as some Republicans last week urged their colleagues on the House Ways and Means Committee to preserve tax credits, like 45Q, that were either expanded or created by the IRA, as lawmakers craft a tax package to be passed via reconciliation. Among those was Texas Rep. Wesley Hunt (R), who represents a western swath of the Houston metro area.
