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Congressmen David McKinley (R-WV), Marc Veasey (D-TX) Introduce ACCESS 45Q Act

December 3, 2020

On December 3, Congressmen David McKinley (R-WV) and Marc Veasey (D-TX) introduced the Accelerating Carbon Capture and Extending Secure Storage through 45Q (ACCESS 45Q) Act (H.R. 8858).  The bill was also cosponsored by Representatives Kelly Armstrong (R-ND), Cheri Bustos (D-IL), Alex Mooney (R-WV), Mike Doyle (D-PA), Lizzie Fletcher (D-TX), and Jack Bergman (R-MI).

The ACCESS 45Q Act would allow carbon capture project developers to elect to receive a direct payment in lieu of the Section 45Q tax credit, which will better enable project financing by allowing project developers to avoid the tax equity markets that make project finance challenging. 

The legislation would also extend the "commence construction" window for the Section 45Q credit by 10 years, providing much needed certainty to project developers contemplating the availability of the credit.  Currently, the six-year commence construction window expires at the end of 2023.  A delay in issuing implementing regulations from the 2018 revisions to the credit combined with the effects of the pandemic have stalled momentum towards private investment in projects to date.  

CURC Executive Director Shannon Angielski issued the following statement in support of the legislation:

“Congress took a major step forward two years ago to promote carbon capture, utilization, and storage (CCUS) when it reformed the Section 45Q tax credit, but a delay in issuing implementing regulations combined with the effects of the pandemic have stalled private investment in projects. Extending the commence construction deadline and implementing a direct payment mechanism for the credit would provide necessary certainty for project developers to access project financing at a time when the economy will limit tax liability. This legislation will ensure the availability of the credit as intended by Congress and will enable full monetization of the tax credits for project finance and represents a necessary step to further advance CCUS projects in the United States. CURC applauds Congressmen McKinley and Veasey for their continued leadership.”

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