Carbon Resource Innovation Act

Key Points

• This bill, introduced by Senators Sheehy and Cantwell, would expand a federal tax credit to include companies that capture carbon in solid or liquid forms. Currently, the credit mostly focuses on capturing carbon dioxide gas from the air or industrial smokestacks.
• To qualify for the tax break, a facility must capture at least 1,000 metric tons of carbon per year. This carbon must be measured when it is caught and verified again when it is buried underground, used in manufacturing, or safely stored.
• The goal is to encourage new ways to stop greenhouse gases from reaching the atmosphere. By including solid and liquid carbon, the government hopes to support innovative technologies that might be more efficient than traditional gas-capture methods.
• The policy would apply to any carbon captured after the bill becomes law. It specifically allows for the carbon to be stored in underground chambers as long as the company can prove that the carbon will not leak back out into the air.

Impact Analysis

Govbase has not yet run an impact analysis on this legislation.