Skip to main content

Our Plan to Reduce Carbon Emissions and Drive Economic Growth
Reps. David Schweikert (AZ-06), Brad Wenstrup (OH-02), Carol Miller (WV-03)
Energy Innovation Agenda: Innovation
Bill: H.R. 2633, Legislation to Improve the Tax Credit for Carbon Oxide Sequestration (or 45Q)

Americans deserve a healthy environment, and Republicans have a plan to reduce carbon emissions and drive economic growth with clean energy technology. Ways and Means Republicans David Schweikert (AZ-06), Brad Wenstrup (OH-02), and Carol Miller (WV-03) have introduced legislation to support carbon capture and sequestration, which removes carbon directly from the air. Unlike the Democrats’ job-crushing “Green New Deal” agenda masquerading as an infrastructure bill, Republicans’ plan supports jobs and offers a realistic, effective solution.

Key Takeaways:

  • For years, Republicans have been offering solutions for investment in innovative climate technologies that would lead to a cleaner environment while simultaneously creating jobs.
  • Democratic “solutions” for addressing climate change would impose a slew of impossible mandates on businesses that would cost Americans their jobs and harm the economy.
  • 45Q was expanded by the Bipartisan Budget Act of 2018, leading to strong growth in investment in carbon capture technology across the United States.
  • Now, Republicans want to boost the technology further by permanently extending and expanding the credit—leading to even stronger investment.
  • This legislation would increase the ability of the private sector to deploy this technology on a wide scale.
    • Occidental Petroleum Corporation is just one example of a company that has announced plans to build new “direct air capture facilities.”
  • According to a recent analysis, maximum utilization of 45Q could create more than 107,000 jobs on average per year over the next 15 years, and $212 billion in new capital investment.

The Schweikert/Wenstrup/Miller legislation to improve the 45Q tax credit would reduce carbon emissions and create jobs by:

  • Making the 45Q tax credit permanent;
  • Increasing the value of the credit for direct air capture operations from $35 to $50 per ton for carbon sequestered as part of enhanced oil and gas recovery, and for other sequestered carbon, increasing the value of the credit from $50 to $85 per ton;
  • Increasing the payout term of the credit from 12 to 20 years;
  • Reducing the minimum amount of carbon that must be sequestered for direct air capture projects to quality from 100,000 tons of carbon to 10,000 tons of carbon;
  • Reducing the minimum amount of carbon that must be sequestered for non-power manufacturing plants to qualify from 100,000 tons of carbon to 25,000 tons of carbon;
  • Reducing the minimum amount of carbon that must be sequestered for electric generating facilities to qualify from 500,000 tons of carbon to 100,000 tons of carbon;
  • Reducing the minimum amount of carbon that must be sequestered for carbon utilization to qualify from 25,000 tons of carbon to 10,000 tons of carbon.

Get the latest from Rep. Wenstrup here, Rep. Schweikert here, and Rep. Miller here.

Tags: