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.
- 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.