U.S. Senator John Barrasso (R-Wyo.) was joined by U.S. Senators James Lankford (R-Okla.) and Bill Cassidy (R-La.) in introducing legislation to enhance carbon capture incentives and energy production, according to a news release.
The Enhanced Energy Recovery Act (S. 5212) would create parity under the Section 45Q carbon capture tax credit by giving across-the-board, equal treatment for carbon captured for increased energy production, utilization, and sequestration.
Currently, the full tax credit incentive for carbon used in enhanced oil recovery (EOR) and utilization is $60/metric ton, while the value for sequestration is $85/metric ton. This bill sets all three values at $85/metric ton for EOR, utilization, and sequestration.
Additionally, the bill creates equal treatment for carbon captured through Direct Air Capture (DAC). It increases the value of DAC-captured carbon used for EOR and utilization by increasing the incentive from $130/metric ton, up to $180/ton, consistent with the current value of captured carbon used in sequestration.
