Bergman, Fletcher Introduce Carbon Capture Bill
Washington,
August 5, 2020
Representatives Jack Bergman and Lizzie Fletcher (TX-07) introduced H.R. 7896, the Redeeming Effectiveness to Carbon Oxide Utilization Plus Sequestration (RECOUPS) Act of 2020. This legislation would provide a direct pay option for Section 45Q tax credits for carbon capture and sequestration - improving the efficiency and effectiveness of the credit while continuing our work to support domestic energy production and reduce carbon emissions.
Rep. Bergman stated, "In the midst of COVID-19, direct pay has become more important than ever to help developers finance carbon capture projects without relying on inefficient and costly methods to monetize tax credits. The RECOUPS Act will help accelerate the development and construction of carbon capture projects currently in progress and encourage the development and deployment of additional projects to help meet mid-century climate goals, create and retain jobs, and support economic growth." Carbon capture projects often rely on 45Q Carbon Capture and Sequestration tax credits to provide financial incentives and security. These credits have received bipartisan support and were most recently expanded in the Bipartisan Budget Act of 2018. Unfortunately, many businesses are unable to capture the full benefit of the credit depending on their tax liability – forcing developers to pursue more costly and inefficient mechanisms to monetize the credit, for instance by forming partnerships with financial institutions |