The so-called Inflation Reduction Act climate change goalsbut the fossil fuel industry can also reap the big bucks.
Tax and spending proposals, which Senator Joe Manchin showed support for last week, would increase the size of the tax credits for carbon capture and sequestration — known as the 45Q — and extend their eligibility period. through 2033 from 2026. It will also give developers the option to receive the value of tax credits as a direct payment from the government for the first five years of a project. While the bill includes sections that could add costs to the hydrocarbon industry, such as methane emissions fees, the inclusion of larger carbon capture subsidies could be lengthy. longevity — and relevance — of the oil and gas industry in a net-free future.
