Manchin, Capito Urge Treasury, IRS To Extend Carbon Capture Utilization For An Additional Year
Washington, DC – U.S. Senators Joe Manchin (D-WV), Ranking Member of the Senate Energy and Natural Resources Committee, and Shelley Moore Capito (R-WV), a member of the Senate Environment and Public Works Committee, sent a bipartisan letter to Treasury Secretary Steven Mnuchin and Internal Revenue Service (IRS) Commissioner Charles Rettig urging them to amend the IRS’s safe harbor guidance to allow carbon capture, utilization and sequester projects an additional year of eligibility. The letter follows the IRS granting certain renewable energy projects an extension in May.
“Extending the safe harbor to qualify for the 45Q tax credit will create and protect thousands of jobs, provide regulatory certainty, and further incentivize carbon capture, utilization and sequestration projects to reduce emissions,” the senators wrote. “As you finalize carbon capture, utilization and sequester regulations, the safe harbor guidance IRS issued in February should be amended to provide carbon capture, utilization and sequester projects an additional year of eligibility.”
In addition to Senators Manchin and Capito, the following senators signed the letter: Senators Sheldon Whitehouse (D-R.I.), Kevin Cramer (R-N.D.), John Hoeven (R-N.D.), John Barrasso (R-Wyo.), Tina Smith (D-Minn.), and Bill Cassidy (R-La.).
The letter was submitted as an official comment on the notice of proposed rulemaking for the 45Q carbon capture tax credit.
Click here to read the letter.
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