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Proposed 45Q Tax Credit Reform Could Give a Big Boost to Carbon Capture Projects


Proposed 45Q Tax Credit Reform Could Give a Big Boost to Carbon Capture Projects
by
Emeka Ochu
|May 6, 2021
A pair of coal trains idle on the tracks near Dry Fork Station, a coal-fired power plant being built by the Basin Electric Power Cooperative near Gillette, Wyoming, in April 2010. (AP Photo/Matthew Brown)
A critical aspect of President Biden’s $2 trillion American Job Plan focuses on mobilizing private capital to invest in clean energy production and deployment in order to achieve 100 percent carbon-free electricity production by 2035. These investments are crucial to his strategy to meet the ambitious new national commitments to the Paris agreement and keep global average temperature to a 1.5 degree C limit. The plan earmarks $15 billion to fund clean energy demonstration projects, including carbon capture and storage, and $46 billion in federal buying power, including of recycled CO2. To spur the expansive deployment of carbon capture, ut ....

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What the Clean Energy for America Act Gets Right — And How it Can Improve


The Clean Energy for America Act, introduced by Senator Ron Wyden (D-OR) in April 2021, takes vital steps toward streamlining the tax code and making clean energy tax credits more effective and accessible. This bill proposes replacing the more than 40 existing clean energy tax credits with three categories of technology-neutral tax credits to incentivize clean electricity, clean transportation and energy efficient homes and commercial buildings.
While this legislation is a step in the right direction, more can be done to improve upon the proposal and existing clean energy tax credits. Doing so would ensure that tax credits reach their full potential as an essential part of the United States’ actions to reduce emissions. ....

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