Rep. Sewell Introduces Legislation to Incentivize Carbon Capture Projects
Washington, D.C. – Today, U.S. Rep. Terri Sewell (AL-07) introduced the Carbon Capture and Sequestration Extension Act (H.R. 5156), legislation that extends the Section 45Q tax credit to incentivize and make more affordable the deployment of carbon capture projects.
“It is critically important that Congress supports innovative approaches to reduce emissions, and carbon capture technology is essential to that fight,” Sewell said. “This legislation expands incentives for businesses across a range of industries to invest in state-of-the-art technologies to lower carbon emissions from existing power plants.”
The legislation extends the Section 45Q tax credit for one year, until January 1, 2025. The 45Q tax credit reduces the cost of investing in carbon capture technology across many industries, including electric power generation, ethanol and fertilizer production, natural gas processing, refining, chemical production, and steel and cement manufacturing.
Sewell’s bill was introduced Tuesday as a provision in the House Ways and Means Committee’s Growing Renewable Energy and Efficiency Now (GREEN) Act, a comprehensive approach to tackling climate change by using the tax code to extend and expand renewable energy use and reduce greenhouse gas emissions.
The Carbon Capture and Sequestration Extension Act is available here.