Fiscal Year 2021 Omnibus bill, and the Energy Act of 2020 (the Omnibus)

  • Passed with strong bipartisan support, included the largest energy package to be enacted into law in ten years and clear support for carbon capture
  • IRS Section 45Q Carbon Capture Tax Credits (45Q) extended for 2 years, to allow facilities to begin construction by the end of 2025
  • Establishes Carbon Capture Technology Program, including R&D, large and small-scale pilot projects and demonstrations, and a front-end engineering and design program (FEED)
  • Authorizes funding to support six (6) Carbon Capture and Sequestration (CCS) demonstration projects, including for coal-fired electric generating facilities
  • Authorizes additional CCS research, development, and demonstration program to identify and assess novel uses of carbon and carbon oxides for commercial and industrial products and other products with market value
  • Authorizes Federal investments in research, development, and demonstration of¬†direct air capture technologies

New Legislation in play that could extend start of construction an additional 5 years, provide for direct pay option on 45Q Tax Credits, increase tax credit price per tonne value, and/or lengthen tax credit duration beyond current 12 years to perhaps 20 years