Summary/Abstract
The Bipartisan Budget Act of 2018 adopted provisions from the FUTURE Act (introduced in 2017) that increase and extend the 45Q tax credit for carbon capture projects that store or use carbon dioxide. The credit increases the value of geologically stored carbon dioxide to $35 per metric ton when stored through enhanced oil recovery and $50 per metric ton for saline and other forms of geologic storage. The credit also provides a $35 per ton credit for carbon dioxide that is captured and beneficially used in an application beyond enhanced oil recovery. The 45Q tax credit applies to direct air capture and carbon monoxide capture projects as well.