GHG Daily
2/5/2016
A large group of fossil energy companies, environmental groups, and utilities on Wednesday sent a letter to the House Ways and Means Committee urging support for a permanent extension of the section 45Q tax credit for carbon dioxide sequestration. “Section 45Q, will expire the year in which the currently authorized 75 million tons of CO2 are stored, and roughly half those credits had already been claimed as of 2014,” the group wrote.
Rep. Mike Conaway (R-Texas) is preparing to introduce legislation addressing Section 45Q. “The proposed legislation would eliminate the [75 million ton] cap, providing certainty that project developers need to obtain financing. The bill would also gradually increase the credit value for CO2 storage through enhanced oil recovery or other types of geologic storage (from $10/ton and $20/ton, respectively) to $30 per ton by 2025,” according to a Feb.3 press release from the group of 20 entities. Conaway intends to release the bill “the next few weeks,” a representative from his office told GHG Daily.
