Carbon capture tax credits are at the center of a new bipartisan bill co-sponsored by Montana U.S. Sen. Tim Sheehy, a Republican, and Sen. Maria Cantwell, a Washington Democrat. The legislation, known as the Carbon Resource Innovation Act, aims to streamline access to valuable tax credits for emerging carbon capture technologies. This initiative is part of the 45Q Carbon Tax Credit program, designed to incentivize industrial and direct carbon capture companies to reduce greenhouse gas emissions.
According to a press release from Sen. Sheehy’s office, companies developing novel carbon capture solutions must currently seek congressional approval to qualify for tax credits. Sheehy emphasized the bill’s role in addressing wildfire threats. “As we continue to enact commonsense reforms to make our forests and communities more resilient against the growing threat of wildfire, it is critical we use the innovative technology and tools at our disposal to ensure proper fuels management,” he stated. “I’m proud to lead yet another bipartisan bill to achieve that goal and keep our treasured landscapes, homes, and businesses safe from the threat of wildfire.”
The press release highlighted several innovative technologies excluded from existing carbon tax credits, such as Methane pyrolysis and Biomass Carbon Removal and Storage. Methane pyrolysis separates methane into hydrogen and solid carbon, generating industrially useful solid carbon not covered under current law. Biomass Carbon Removal and Storage transforms captured carbon dioxide into a “carbon-rich solid or liquid,” which can be used industrially or stored in vaults.
“By putting these undervalued carbon resources to work, this bill will create new income streams for American farmers and drive wildfire mitigation by creating a market for low- and no-value material, reducing disposal costs,” the press release stated.
