US levels 45Q tax credit for CO2 utilisation and sequestration
The Section 45Q tax credit for carbon dioxide utilisation has been increased to match the $85 per tonne rate for sequestration, creating a level playing field in the merchant market.
Under the previous law, the tax credit favoured CO₂ sequestration at $85 per tonne, while CO₂ utilisation, which supports critical markets such as food, beverage, and medical, was only eligible for $60 per tonne.
However, the law was changed when President Trump signed the One Big Beautiful Bill Act on 4 July.
The CO2 Solutions Coalition, a CO2-focused lobbying arm of the Compressed Gas Association (CGA), had been lobbying for credit parity since its launch in January 2024.
… to continue reading this article and more, please login, register for free, or consider subscribing to gasworld
Register today
You’ve reached your weekly limit to access free articles!
Want to keep reading?
Please register for free and create a profile to gain access to this full article and gasworld’s daily news.
For access to more content including our monthly digital magazines, subscriber-only features or columns and all our other gasworld archives, please consider subscribing.
Alternatively, you can continue reading more articles as a guest on Wednesday, 9th July at 8:37PM
