U.S. Senators Lisa Murkowski (Republicans, Alaska) and Michael Bennet (Democrats, Colorado) have introduced a Carbon Dioxide Removal Investment Act to create a production tax credit that will fuel the advancement of CO2 removal in the United States.
The new tax credit, potentially named 45BB, will be technology-neutral, meaning it will provide support to natural and engineered carbon removal approaches that are ready for deployment. This would widen the support approaches from the 45Qs focus on direct air capture (DAC) and bio-energy with carbon capture (BECCS) to enhanced rock weathering, marine carbon removal and those focused on using biomass.
According to the bill’s provisions a credit of $250 per ton of removed carbon will be provided with the exception of BECCS which would receive $110.
One important condition for those looking to claim the credit is that it will only be available to companies that are not in line for funds from the existing 45Q credit.
The Carbon Dioxide Removal Investment Act was met with approval from relevant figures in the sector, with many calling this decision a right step towards catalyzing innovation and effective solutions within the carbon removal industry.
“Climeworks commends U.S. Senators Michael Bennet and Lisa Murkowski for their leadership on the Carbon Dioxide Removal Investment Act. Last year, Climeworks was honored to host the Senators as part of a bipartisan delegation to our direct air capture facilities in Iceland. The CDR Investment Act would drive even more investment in the US to deploy the next generation of CDR projects and supercharge American leadership in carbon management,” said Andrew Fishbein, Climeworks’ Lead Government Affairs North America.
Christina DeConcini, Director of Government Affairs at the World Resources Institute, commented, “Through technology-neutral support that doesn’t pick winners, this bill creates a level playing field that will advance innovations with the biggest climate impact while supporting new jobs and maintaining U.S. leadership in the carbon removal sector.”
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She goes on to invite other members of Congress to join Senators Bennet and Murkowski, highlighting that this motion demonstrates bipartisan support for CO2 removal.
On her end, Senator Murkowski shared that, due to its unique characteristics, Alaska is the perfect candidate to be a national leader in carbon dioxide removal.
She added, “This tax credit will help jumpstart critical projects in this burgeoning industry, helping Alaska realize enormous untapped economic potential.”
Giana Amador, Executive Director of the Carbon Removal Alliance, one of the organizations involved in creating the proposed bill, said “This tax credit for carbon removal will allow innovative American companies working to permanently remove carbon pollution from our atmosphere to access critical incentives that can power their work — in turn unlocking climate benefits, economic growth, and in-demand jobs across the country.”
A summary of each section can be accessed through here and a one-page summary is available here.
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