Armstrong Joins Bipartisan Effort to Spur Development of Carbon Capture Technologies
WASHINGTON – Congressman Kelly Armstrong (R-ND) joined Congressmen David McKinley (R-WV) and Marc Veasey (D-TX) in reintroducing the Accelerating Carbon Capture and Extending Secure Storage through 45Q (ACCESS 45Q) Act. This bipartisan legislation extends the date for projects to begin construction to claim the 45Q tax credit for carbon dioxide sequestration by ten years. It also tweaks the tax credit to make it more attractive to developers.
The COVID-19 pandemic has hurt the U.S. energy sector and slowed the development of carbon capture projects. By extending the eligible date for projects to begin construction, allowing developers upfront access to the full value of the credit, and opening up financing opportunities to those companies with an international reach, the ACCESS 45Q Act provides the long-term certainty that the U.S. needs to build carbon capture projects and reduce carbon emissions as the U.S. regains its position as a global energy leader.
“North Dakota’s energy producers are leaders in carbon capture technology, and the 45Q tax credit plays an important role in spurring this technology,” said Congressman Armstrong. “This bill will make accessing the credit easier for producers, leading to more widespread adoption of the technology and will help preserve the future of our energy resources for generations.”
A recent report by CCS institute stated, “U.S. involvement in 12 of the 17 new facilities in 2020 is largely due to the enhanced 45Q tax credit signed into law in 2018, with the Internal Revenue Service issuing more detailed guidance in 2020.” To read the report, click here.
The International Energy Agency has also supported the use of carbon capture, utilization, and storage (CCUS) as a pathway towards net-zero carbon dioxide emissions claiming that “reaching net zero will be virtually impossible without CCUS.” To read the report, click here.