On June 22, House Democrats released the legislative text for the Moving Forward Act (H.R. 2). CURC is pleased to report that the legislation includes an extension of the commence construction date for the Section 45Q tax credit for carbon oxide sequestration and a provision that would allow project developers to elect to utilize a direct payment option for the credit.
Both of these provisions are critical to ensure that project developers and investors can take advantage of the Section 45Q tax credit and facilitate the deployment of carbon capture, utilization, and storage (CCUS) projects, particularly as the U.S. economy recovers from the impacts of the COVID-19 pandemic. Direct pay and an extension of the credit will create more opportunities for investment in CCUS projects and allow CCUS infrastructure projects to contribute to the economic recovery effort.
CURC would like to extend its gratitude to Congresswoman Terri Sewell (D-AL), whose leadership and support of CCUS on the House Ways and Means Committee resulted in the inclusion of these critical provisions in the Moving Forward Act. We look forward to working with Congresswoman Sewell and her colleagues in the House to ensure that these provisions are passed by the House and ultimately signed into law by the President this year.