Last week, CRES Forum hosted a briefing: “Enhancing America’s Competitiveness Through Carbon Capture.” This session featuring opening remarks from U.S. Rep. Randy Weber (R-Texas) and featured several high-profile industry leaders and stakeholders to discuss the development of carbon capture technologies.
One key tax credit when it comes to carbon capture is Section 45Q of the Internal Revenue Code. 45Q is a key federal incentive for carbon capture technology and is making carbon capture use and storage available for widespread adoption. First established in 2008 and expanded twice with bipartisan support, this credit is a critical piece to an all-of-the-above energy approach. However, with its recent expansion done on a partisan basis, CRES is working with key lawmakers, staff and industry players to garner more support for the tax credit.
The panel was moderated by CRES’ own Christina Baworowsky, Vice President of Policy and Advocacy, and included Jessica Olson, Head of Global Affairs at Americas for Topsoe, Linda Dempsey, who serves as Vice President of Public Affairs at CF Industries, and Rachel Fox, the Director of Policy and Strategy for the American Petroleum Institute (API).
Together, they discussed the power of 45Q regarding investments in American manufacturing, creating jobs and keeping the nation resilient against adversarial nations like China. One key point was echoed by all panelists: America should be the place for companies to invest and create jobs and if it’s not, our competitors will get energy investments that will hurt our country’s supply chains.
As the United States continues to experience an unprecedented period of energy growth, 45XQ stands out as a strong federal incentive that contributes to job creation across the nation. This is particularly true in power plants, factories, among ethanol producers and within green energy companies. With that said, there is no doubt 45Q tax credit is necessary for domestic and global competitiveness.
All these factors and more were focused on throughout the discussion, with a strong emphasis for those in attendance to explain 45Q’s benefits to lawmakers and companies in their states and districts. With job growth from 45Q in states from Texas to California, these tax credits should be a nonpartisan issue. For more information, you can read more about the power of the 45Q credit here.
As discussions around key tax credits like 45Q continue on Capitol Hill and around Washington, D.C., CRES Forum remains committed to educating lawmakers and staff on commonsense energy solutions that increase domestic and global competitiveness while empowering American job creators.