A new analysis from Taxpayers for Common Sense says that almost 90% of 45Q tax credits from 2010 to 2019 were based on insufficient reporting or even fraud.
$894 million of $1 billion were found to not comply with the requirements of the Environmental Protection Agency (EPA) for reporting of sequestered carbon dioxide emissions.
The 45Q tax credit was designed as a means to incentivize the rapid development of novel technology that would help reduce CO2 and other greenhouse gas (GHG) emissions at scale.
However, different organizations are now sounding the alarm that taxpayer money is likely being misused.
The nonpartisan organization called Taxpayers for Common Sense is one of them, as its latest issue brief outlines the fact that 10 taxpayers have claimed over $1 billion in 45Q tax credits in the period of 2010-2019, which is close to 99% of the total amount of tax credits claimed.
Relevant: What is The 45Q Tax Credit?
Yet even despite the evidence of fraudulent behavior and abuse of the government incentive, in 2022, Congress expanded the scope of 45Q, which has raised much concern over further possible abuse and fraud.
Taxpayers for Common Sense Vice President Autumn Hanna believes that the way things are going, it is very likely that the 45Q tax credit in its new form will do little more than help increase the already sky-high profits of the fossil fuel industry.
“What we have found is that American taxpayers are being forced to foot the bill for a flawed climate solution in the form of a tax credit that is subsidizing the very industries responsible for climate change,” Autumn Hanna said.
Read more: Record Oil Company Profits In 2022 Won’t Be Used For Decarbonization
