Contrasting a call by environmental group Green Scissors to keep an extension to the 45Q carbon storage tax credit off the 2016 Federal Aviation Administration Reauthorization Act, nongovernmental groups Third Way, the Clean Air Task Force, the Center for Climate and Energy Solutions, and the Great Plains Institute on Thursday called for its inclusion.
“While this tax credit is backed by a number of industry and labor groups because of the economic benefits, our organizations also support carbon capture, utilization and storage (CCUS) because it is a crucial technology for addressing climate change and the 45Q tax credit is a key catalyst for its deployment.,” the group wrote in a June 23 letter to Senate Finance Committee Chairman Orrin Hatch (R-Utah) and Ranking Member Ron Wyden (D-Ore.).
The letter directly contradicts the Green Scissors letter, sent Tuesday to the same senators. “These handouts should find no place in the Federal Aviation Administration (FAA) reauthorization or any future legislation,” the group wrote, calling CCS “a failed investment of our tax dollars and a failed attempt to limit the carbon emissions from burning coal.”
The 45Q tax credit, as written, has a credit value for CO2 storage through enhanced oil recovery or geologic storage of $10 per ton and $20 per ton, respectively, and would expire as soon as the currently authorized 75 million tons of CO2 is stored. Roughly half of those credits have already been claimed. Sen. Heidi Heitkamp (D-N.D.) in April proposed an amendment to the FAA reauthorization that would extend the tax credit, drop the cap, and increase the dollar amount to $30 per ton of carbon captured.
The Senate dropped her amendment from the version of the bill sent to the House. However, it now appears the House may make changes to the bill substantial enough for it to be returned to the Senate for further consideration, making it possible once again for the amendment to be added. A representative for Heitkamp did not respond to a request for comment on the situation.
