Extends 45Q tax credit for carbon capture and sequestration through 2032, adds eligibility for direct air capture, and increases the value of the credit. The base credit is now $17/ton for sequestration and $12 per ton for use. For direct air capture the credit is $36/ton for sequestration and $26/ton for use. All credit amounts are multiplied by 5 for projects meeting prevailing wage and apprenticeship requirements. To qualify for the credit, direct air capture facilities must capture no less than 1,000 metric tons of carbon oxide per year. Electricity generating facilities must capture no less than 18,750 metric tons of carbon oxide and have a capture design capacity of not less than 75% of baseline carbon emissions. Other facilities must capture no less than 12,500 metric tons of carbon oxide. Tax credit is eligible for transferability and direct pay.

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Federal Agency: Department of the Treasury

Category: Program