Summary/Abstract
This bill amends the Internal Revenue Code to extend and modify the tax credit for carbon dioxide (CO2) sequestration. The bill modifies the credit to:
- allow certain new industrial facilities or equipment to qualify for the credit if construction begins before January 1, 2024;
- allow qualified projects to claim the credit for 12 years, beginning on the date the equipment was originally placed in service;
- increase the separate credit amounts, with respect to projects placed in service upon or after the enactment of this bill, that apply to captured CO2 that is: (1) disposed of in secure geological storage, and (2) used as a tertiary injectant in an enhanced oil or natural gas recovery project and disposed of in secure geological storage;
- expand the purposes for which captured CO2 may be used;
- establish separate CO2 capture thresholds based on whether the facility is an electricity generating facility or used for other purposes;
- specify that the 75 million metric ton cap on the CO2 that may qualify for the credit applies only to projects placed in service before the enactment of this bill; and
- allow the credit to be transferred from the entity that owns and uses the capture equipment to the entity that disposes of or uses the CO2.