New US Tax Incentives for CCUS (The FUTURE Act)

The FUTURE Act provides tax credits for CO2 captured from power plants, industrial sources, and direct air capture, with rates ramping up to $50/ton for saline storage and $35/ton for enhanced oil recovery by 2026. The credits are available for 12 years to projects that commence construction within a six-year window. Assessments by the IEA and DOE suggest the act could increase capture capacity or reduce emissions by 10 to 30 million tons by 2030, with significant interest from industrial sources and companies like Occidental Petroleum.

• The FUTURE Act amends section 45Q of the US Tax Law to provide credits for CO2 captured from direct air capture, industrial sources, and coal and gas power plants, provided the CO2 is securely stored geologically or reduces emissions through utilization.
• Tax credit values will increase linearly from 2017 to 2026, reaching $50/ton for saline storage and $35/ton for enhanced oil recovery (EOR) and other utilization, after which they will increase at the inflation rate.
• Eligible projects must commence construction within a six-year window from the date of enactment and can receive the tax credit for a period of 12 years.
• The credit is assigned to the owner of the carbon capture equipment and can be transferred to the storage operator.
• The International Energy Agency (IEA) and the US Department of Energy (DOE) both estimate that the act could lead to 10 to 30 million tons of increased capture capacity or emissions reduction by 2030.
• Industry interest is emerging in the Midwest, Interior West, and South Central US, including a proposed trans-Texas pipeline CCUS corridor by Occidental Petroleum that could connect 100 sources to oil fields to store over 80 million tons per year.

APA

Clean Air Task Force (2018). New US Tax Incentives for CCUS (The FUTURE Act). https://cdn.catf.us/wp-content/uploads/2018/10/21094109/45Q_New_Tex_Incentives_CCUS.pdf

Chicago

Clean Air Task Force. New US Tax Incentives for CCUS (The FUTURE Act). 2018. https://cdn.catf.us/wp-content/uploads/2018/10/21094109/45Q_New_Tex_Incentives_CCUS.pdf.

Wikipedia

{{cite report |author=Clean Air Task Force |title=New US Tax Incentives for CCUS (The FUTURE Act) |date=30 August 2018 |url=https://cdn.catf.us/wp-content/uploads/2018/10/21094109/45Q_New_Tex_Incentives_CCUS.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{cleanairtaskforce2018new, author = {{Clean Air Task Force}}, title = {{New US Tax Incentives for CCUS (The FUTURE Act)}}, institution = {Clean Air Task Force}, year = {2018}, month = aug, url = {https://cdn.catf.us/wp-content/uploads/2018/10/21094109/45Q_New_Tex_Incentives_CCUS.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }