BISMARCK – U.S. Senator Kevin Cramer (R-ND), a Senate Environment and Public Works (EPW) Committee member, issued the following statement today on the Treasury Department and Internal Revenue Service (IRS) finalizing the section 45Q carbon capture utilization and storage (CCUS) tax credit:
“Carbon capture is the future of reliable, low emissions energy, and North Dakota is a national leader in the development and use of this technology. With the administration’s long-awaited guidance finalized, investors can now take advantage of the carbon capture tax credit with confidence and clarity.”
The 45Q CCUS tax credit was extended and expanded as part of the FUTURE Act (Furthering carbon capture, Utilization, Technology, Underground storage, and Reduced Emissions Act) in 2018, a bill to incentivize the creation of innovative technology to capture, store, and utilize carbon. Since the FUTURE Act’s passage, Senator Cramer has been working with energy producers and utilities to get the Trump Administration to release this guidance clarifying how the credit can be used, leading efforts such as a recent letter on 45Q to Treasury Secretary Steven Mnuchin and IRS Commissioner Charles Rettig.
When this guidance was initially proposed, Senator Cramer voiced his support for it at a Senate Budget Committee hearing. North Dakota energy leaders thanked Senator Cramer for his work on this issue and also offered statements supporting the proposal.
In December, Congress passed a two-year extension of the 45Q commence construction deadline, which will help support the development and implementation CCUS technology and provide an important revenue stream to coal producers.
Last year, Senator Cramer helped introduce bipartisan legislation to enhance the 45Q and 48A tax credits to support CCUS efforts and ensure coal continues to have a role in the nation’s energy supply.