The Role of 45Q Carbon Capture Incentives in Reducing Carbon Dioxide Emissions

The document explains that Section 45Q provides performance-based tax credits to industrial facilities and power plants that capture CO2 for geological storage or utilization. It highlights Department of Energy (DOE) modeling suggesting these incentives could reduce power sector emissions by 50 to 70 million tonnes annually by 2030-2040 and argues that CO2-enhanced oil recovery (EOR) results in net emission reductions by displacing other crude oil sources.

• Section 45Q offers tax credits to entities capturing CO2 from sources such as steel mills, ethanol plants, and power plants, provided the CO2 is stored geologically or used as a product component. The credit value is $50 per tonne for saline storage and $35 per tonne for utilization, including enhanced oil recovery (EOR), with credits lasting up to 12 years.
• Department of Energy (DOE) modeling indicates that the proposed credit levels would lead to power sector CO2 emission reductions of approximately 50 million tonnes per year by 2030, increasing to nearly 70 million tonnes per year by 2040.

APA

Clean Air Task Force (n.d.). The Role of 45Q Carbon Capture Incentives in Reducing Carbon Dioxide Emissions. https://cdn.catf.us/wp-content/uploads/2017/12/21094407/CATF_FactSheet_45QCarbonCaptureIncentives.pdf

Chicago

Clean Air Task Force. The Role of 45Q Carbon Capture Incentives in Reducing Carbon Dioxide Emissions. n.d. https://cdn.catf.us/wp-content/uploads/2017/12/21094407/CATF_FactSheet_45QCarbonCaptureIncentives.pdf.

Wikipedia

{{cite report |author=Clean Air Task Force |title=The Role of 45Q Carbon Capture Incentives in Reducing Carbon Dioxide Emissions |url=https://cdn.catf.us/wp-content/uploads/2017/12/21094407/CATF_FactSheet_45QCarbonCaptureIncentives.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{cleanairtaskforcendrole, author = {{Clean Air Task Force}}, title = {{The Role of 45Q Carbon Capture Incentives in Reducing Carbon Dioxide Emissions}}, institution = {Clean Air Task Force}, url = {https://cdn.catf.us/wp-content/uploads/2017/12/21094407/CATF_FactSheet_45QCarbonCaptureIncentives.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }