Congresswoman Lizzie Fletcher Applauds IRS Guidance on Carbon Capture Tax Credit
(Washington, DC) – Congresswoman Lizzie Fletcher (TX-07) is pleased the Internal Revenue Service (IRS) has issued interim guidance on the 45Q tax credit following her bipartisan effort. This guidance will help businesses understand how they can benefit from legislation passed in 2018 intended incentivize carbon capture and removal technology projects. Earlier this month, Congresswoman Fletcher and Congressman Schweikert (AZ-06) sent a letter to the IRS calling on them to issue this guidance as soon as possible.
“Carbon capture, utilization, and storage (CCUS) will put our country on a path to a lower emission future. I am glad the IRS has issued part of this critical guidance that will help companies take advantage of the 45Q tax credit,” said Congresswoman Fletcher. “Companies in my district that are ready to implement these important projects that are so critical for meeting the challenges before us and ushering in our energy future.”
In 2018, Congress passed the Furthering Carbon Capture, Utilization, Technology, Underground Storage, and Reduced Emissions Act (FUTURE Act) as part of theBipartisan Budget Act of 2018 to enhance the 45Q tax credit to incentivize carbon capture and removal technology deployment in the United States. Before carbon capture projects could begin construction, however, the IRS needed to issue implementation guidance on a number of key issues, including what kind of projects qualify for the tax credit. Now that the IRS has issued interim guidance following its two-year delay, industry can begin to model these critical projects.