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Tax Incentives for CCS

MCLI Recommendation: “Congress can expand tax credit programs under §§48A and 48B of the Internal Revenue Code by: (1) explicitly extending them to NGCC plants that capture CO2; (2) enlarging the five-year time frame; and (3) appropriating additional funds.”

LPDD Recommendation: “Congress could expand the existing production tax credit for renewable generation to include electricity that is produced by plants that use CCS.”

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Example States and State Governments

Kansas Tax Incentives for CCS

Kansas Stat. Ann. 79-32,256 entitles a taxpayer to a deduction from Kansas adjusted gross income with respect to the amortization of the amortizable costs of carbon dioxide capture, sequestration or u...
Resource Congress

Proposed Carbon Capture Modernization Act

The proposed Carbon Capture Modernization Act (2019) would correct design flaws in the 26 USC §48A CCS tax incentive program that have made it impossible for companies to access existing incentives to...
Resource States and State Governments

C2ES Database on U.S. State Energy Financial Incentives for CCS

The Center for Climate and Energy Solutions maintains a map-based database of state financial incentives for CCS.
Resource Congress

Report, Putting the Puzzle Together: State and Federal Policy Drivers for Growing America’s Carbon Capture and CO2-EOR Industry

The Great Plains Institute, working with a task force including the state executives of Montana and Wyoming, published a 2016 report recommending a targeted package of federal incentives for CCS, whic...
Example States and State Governments

North Dakota Tax Incentives for CCS

North Dakota’s Cent. Code Ann. §57-60-02.1 provides that a coal conversion facility that achieves a twenty percent capture of carbon dioxide emissions during a taxable period is entitled to a twenty p...
Example States and State Governments

Illinois Clean Coal Portfolio Standard

The Illinois Clean Coal Portfolio Standard of 2009 targets CCS project development and deployment. The CCPS provides tax credits for facilities that capture at least 50 percent of their total CO2 emis...
Example States and State Governments

New Mexico Tax Incentives for CCS

NM Stat. Ann. 7-2-18.25 provides an advanced energy tax credit for coal facilities that capture and sequester or control CO2 emissions so that no more than one thousand one hundred pounds per megawatt...
Resource Executive Branch

Congressional Research Service Brief on Clean Coal Tax Incentives

A 2014 Congressional Research Service brief provides a survey of clean coal loan guarantees and tax incentives.
Example Congress

Federal sequestration tax credit

26 USC §45Q creates a tax credit for the sequestration of carbon dioxide captured from an industrial source. Beginning in 2008, investment tax credits of $20 per metric ton of CO2 and $10 per captured...
Example States and State Governments

Texas Tax Incentives for CCS

Texas Tax Code Ann. §171.602 provides for a Clean Energy Tax Credit, which applies to projects sequestering at least 70 percent of the carbon dioxide resulting from or associated with the generation o...
Resource Congress

Proposed Carbon Capture Improvement Act of 2017

The Proposed Carbon Capture Improvement Act of 2017 would have amended the Internal Revenue Code to authorize the issuance of tax-exempt facility bonds for the financing of qualified carbon dioxide ca...
Resource Congress

Carbon Capture Coalition’s 2019 Federal Policy Blueprint

The Carbon Capture Coalition’s 2019 Federal Policy Blueprint analyzes challenges to implementing §45Q CCS tax credits, as well as other tax policies needed for investment certainty and technology depl...
Example States and State Governments

Indiana Tax Incentives for Coal Gasification

Indiana Code Annotated 6-3.1-29-14 provides for a Coal Gasification Technology Investment Tax Credit.
Example States and State Governments

Montana Tax Incentives for CCS

Montana Code Ann. § §15-24-3111 provides that carbon sequestration equipment, clean advanced coal research and development equipment, and coal gasification facilities for which carbon dioxide is seque...
Example States and State Governments

Kansas HB 2419

Kansas’ HB 2419 (2007) provides for income tax reductions and abatement of property taxes applicable to the power plant and the sequestration site for a generation project that sequesters CO2.
Example Congress

Federal tax incentives for clean coal power generation facilities

26 USC §48A allows up to a 30% tax credit for qualifying advanced coal projects generating electricity that also capture and sequester 65% or more of their carbon dioxide emissions. 26 USC §48B allows...