MINOT, ND – U.S. Senator Kevin Cramer (R-ND), a Senate Environment and Public Works (EPW) Committee member, issued the following statement on the Internal Revenue Service (IRS) releasing pre-regulation guidance on carbon capture tax credits today:
“Thank you to Treasury Secretary Mnuchin and the Trump Administration for issuing this long-awaited guidance. 45Q is meant to incentivize investment in carbon sequestration technology, but North Dakota’s coal, ethanol, and energy producers have been waiting for this direction so they can invest with confidence. I look forward to working with Treasury to make sure the upcoming Notice of Proposed Rulemaking reflects North Dakota’s priorities.”
The 45Q 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 innovative technology for industry to capture, store, and utilize carbon. Since the FUTURE Act’s passage, energy producers and utilities have been awaiting administrative action on how the 45Q tax credit will be implemented.
Following today’s guidance, the IRS will issue a Notice of Proposed Rulemaking in the coming months. The final guidance could enhance North Dakota’s coal and enhanced oil recovery operations.
Click here for more information from the IRS.
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