A diverse group of over 160 businesses, trade associations, labor unions, and policy groups, spearheaded by the Carbon Capture Coalition, has urged Congress to continue its bipartisan backing of the federal Section 45Q tax credit.
This appeared to emphasizes the 45Q credit’s vital role in supporting American enterprises.
A public letter addressed to congressional leaders highlights the broad, cross-sectoral support for this incentive, which is seen as crucial for economic stability at national, state, and local levels. The 45Q tax credit is considered essential for the expansion of carbon management technologies.
These technologies are viewed as key to securing domestic energy resources, bolstering American industrial and manufacturing sectors, generating well-paying jobs, and preserving the nation’s leadership in technological innovation.
The letter emphasizes several key points:
- The importance of carbon management and the 45Q tax credit as a driver of economic growth.
- The role of the 45Q tax credit in maintaining U.S. energy dominance.
- The significance of 45Q in meeting the increasing demand for electricity in the United States.
- The need to ensure the global competitiveness of American industries.
Relevant: Carbon Capture Coalition Urges Congress To Adjust 45Q
Jessie Stolark, Executive Director of the Carbon Capture Coalition, expressed pride in leading this initiative, highlighting the diverse range of stakeholders involved.
“These sectors rely on the certainty 45Q provides to plan investments, hire workers, and obtain construction materials, among other critical business decisions,” Stolark said.
Federal investment, encompassing both tax incentives and support for research, development, demonstration, and deployment, is critical for the successful commercialization of these technologies.
Relevant: Atlantic Unveils First Insurance For 45Q Carbon Capture Tax Credits
Recent federal commitments to carbon management and related infrastructure have led to over 270 publicly announced domestic projects across the carbon management spectrum.
Without a robust 45Q tax credit, these projects, and the economic benefits they bring to local communities, are at significant risk of being discontinued.
“We are at an important inflection point as the global demand for energy continues to skyrocket. The US must continue to lead the way in deploying technologies like carbon capture to ensure we can meet the domestic electricity realities of the moment in a reliable, sustainable way,” Stolark added.
