Carbon Capture Improvement Act of 2021

Carbon Capture Improvement Act of 2021

This bill authorizes the issuance of tax-exempt facility bonds for the financing of qualified carbon dioxide capture facilities.

A qualified carbon dioxide capture facility is any equipment installed in an industrial carbon dioxide facility that satisfies specified capture and storage requirements and (1) is used for the capture, treatment and purification, compression, transportation, or on-site storage of carbon dioxide produced by the industrial carbon dioxide facility; or (2) is integral or functionally related and subordinate to a gasification process that converts a product from coal, petroleum residue, biomass, or other materials that are recovered for their energy or feedstock value into a synthesis gas composed primarily of carbon dioxide and hydrogen for direct use or subsequent chemical or physical conversion.

Bill 117 hr 4408, also known as the Carbon Capture Improvement Act of 2021, aims to promote the development and deployment of carbon capture technologies in the United States. The bill seeks to incentivize the reduction of greenhouse gas emissions by providing tax credits for carbon capture, utilization, and storage projects.

Specifically, the bill proposes to extend and expand the Section 45Q tax credit, which currently provides a tax credit for carbon capture and sequestration projects. The bill would increase the value of the tax credit for projects that capture carbon dioxide from industrial sources and for projects that utilize captured carbon dioxide for enhanced oil recovery.

Additionally, the bill includes provisions to streamline the permitting process for carbon capture projects and to establish a Carbon Capture Technical Advisory Council to provide guidance and recommendations on the development and deployment of carbon capture technologies. Overall, the Carbon Capture Improvement Act of 2021 aims to support the growth of carbon capture technologies in the United States, with the goal of reducing greenhouse gas emissions and combating climate change.