Carbon Capture Tax Credit Repeal
A house committee must act next: committee consideration.
While the bill has support from both parties, carbon capture is a major part of current energy policy and has strong backing from powerful industry groups.
Scores run from -100 (strongly harmful) to +100 (strongly beneficial) for each group, combining impact, certainty, scope, and duration ratings of 1-5. How impact scoring works
Smaller carbon capture technology developers and project operators that rely on the 45Q credit to make their projects financially viable would lose that revenue stream for tax years starting after 2025. Many carbon capture and direct air capture startups depend heavily on this credit to attract financing, so losing it could stall or cancel planned projects.
“The amendments made by this section shall apply to taxable years beginning after December 31, 2025.”
Referred to the House Committee on Ways and Means.
Introduced in House
The bill was officially filed and given a number. It now enters the legislative queue.
Reps. Scott Perry (R-Pa.) and Ro Khanna (D-Calif.) announced legislation to repeal the 45Q tax credit, which is calculated based on the amount of carbon dioxide that energy and other polluting companies capture and store. Perry called 45Q a 'wasteful' credit that distorts energy markets.
The tug-of-war over energy incentives is complex, with Rep. Ro Khanna joining Rep. Scott Perry to introduce legislation to repeal tax breaks for carbon capture technology, which one study said could cost taxpayers $800 billion over 18 years, benefiting the fossil fuel industry.
Despite the introduction of the 45Q Repeal Act by Reps. Perry and Khanna in March, a draft from the House Ways & Means Committee indicates the credit remains intact. The industry's growth provided a foundation for its preservation, even as other Inflation Reduction Act credits face cuts.
No votes or related bills recorded for this bill yet.
Document Type
Congressional Bill
Official Title
45Q Repeal Act of 2025
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