WASHINGTON, D.C. — U.S. Senator John Barrasso (R-WY), chairman of the Senate Committee on Environment and Public Works (EPW), released the following statement on the Internal Revenue Service’s (IRS) Request for Information about implementation of the 45Q tax credit for carbon capture, utilization, and sequestration (CCUS).
“The IRS is giving critical direction to companies that want to invest in carbon capture projects,” said Barrasso. “The agency’s action is a key first step in implementing the FUTURE Act. Carbon capture technology is groundbreaking innovation that will reduce emissions and help address climate change.”
Passed in 2018, the Furthering carbon capture, Utilization, Technology, Underground storage, and Reduced Emissions Act (FUTURE Act) extended and expanded the 45Q tax credit. Barrasso, and committee members Sens. Shelley Moore Capito (R-WV) and Sheldon Whitehouse (D-RI), sponsored the FUTURE Act.
In February 2019, Barrasso, Capito, and Whitehouse sent a letter requesting that the IRS expeditiously move forward with implementation of the FUTURE Act so that the tax credit can be effectively used. Today’s announcement is an important first step toward providing direction to entities interested in claiming the tax credit. The IRS’s Request for Information asks for public comment on a number of key questions within 45 days.
Since the passage of the FUTURE Act, Barrasso has pushed for clarity from the IRS to maximize the use of the 45Q tax credit. The Clean Air Task Force called the FUTURE Act “one of the most important bills for reducing global warming pollution in the last two decades.”
To further support the development of carbon capture technologies, Barrasso introduced S. 383, Utilizing Significant Emissions with Innovative Technologies (USE IT Act). The USE IT Act passed out of the EPW Committee by voice vote on April 10, 2019. A House companion bill, H.R. 1166, has yet to be considered by any House committees.