U.S. Rep. Scott Perry (R-PA) introduced bipartisan legislation to repeal the 45Q tax credit for carbon capture and sequestration.
The 45Q Repeal Act (H.R. 1946) — the carbon oxide sequestration credit — is cosponsored by U.S. Rep. Ro Khanna (D-CA).
Perry said the Clean Air Task Force CCS project database includes CO capture estimates for 142 of the 225 projects that have been announced.
“Assuming the 142 are all built within seven years of announcement, access 45Q credits for 12 years, and no other carbon capture projects are added: Taxpayers could pay a total of $835 billion over 18 years, an average of about $6 billion per project In this scenario, annual expenditures would top $60 billion by 2030 and remain above that for 10 years — an enormous jump from less than $3 billion in 2025,” the bill’s fact sheet states.
Perry added that the funding just for announced projects with storage estimates could balloon to $2.1 trillion by 2050 if 45Q credit values are raised and the term is extended. Further, he said 45Q could cost $2.8 trillion by 2050 if expanded through increased 45Q credits, extended eligibility, and the addition of 25 million tonnes of storage per year starting in 2032.
“We’ve got to get the federal government out of every facet of our lives,” Perry said. “The American People demand that we cut waste, fraud, and abuse, and don’t want their tax dollars being used to prop up inefficient and market-distorting technology.”
Additionally, said Perry, the DOE’s Carbon Liftoff report estimates an average of 400 to 1,800 million tonnes CO must be captured and stored each year to meet U.S. goals by 2050. He said that it could cost taxpayers between $1.1 trillion and $3.8 trillion, assuming a rapid scale-up, storage of nearly all CO captured, and continuous funding under 45Q with a 2.3% annual inflation adjustment.
Perry added the bill seeks to allow markets to work by demand, not disrupted by subsidies from the federal government.