Fact Check: Tax credits for carbon capture could reach up to $180 per ton.

Fact Check: "Tax credits for carbon capture could reach up to $180 per ton."

What We Know

The claim that tax credits for carbon capture could reach up to $180 per ton is supported by several credible sources. According to the Section 45Q Tax Credit for Carbon Sequestration, the base credit for carbon dioxide (CO2) captured and stored is set at $17 per metric ton, which can be increased to $85 per ton for facilities that meet specific criteria, such as paying prevailing wages. Notably, for direct air capture (DAC) technologies, the credit can be as high as $180 per ton. This is further corroborated by the Carbon Capture and Sequestration Tax Credit, which mentions that the credit for DAC can indeed reach $180 per metric ton.

Additionally, the FAQs About 45Q: The Carbon Capture Tax Credit outlines the various applications of the tax credit, emphasizing that the amount can vary based on the method of carbon capture and the conditions under which it is implemented.

Analysis

The evidence supporting the claim comes from multiple reputable sources, including government documents and industry reports. The Section 45Q Tax Credit for Carbon Sequestration is particularly reliable as it is a government publication that outlines the specifics of the tax credit, including the maximum amounts available for different types of carbon capture technologies. The mention of $180 per ton for DAC is a significant detail that directly supports the claim.

The Carbon Capture and Sequestration Tax Credit also provides a detailed breakdown of the credit amounts, reinforcing the assertion that the maximum credit can reach $180 per ton for certain applications. Furthermore, the FAQs About 45Q provide additional context on how these credits can be utilized, indicating a broad acceptance of the $180 figure within the industry.

In terms of source reliability, the documents from Congress.gov and the Carbon Capture Coalition are authoritative and well-regarded in the field of environmental policy and tax incentives. They provide clear, factual information that is not influenced by commercial interests, making them trustworthy references for this claim.

Conclusion

Verdict: True
The claim that tax credits for carbon capture could reach up to $180 per ton is accurate based on multiple credible sources. The tax credit structure outlined in government documents confirms that direct air capture technologies can indeed qualify for this maximum amount, thereby validating the claim.

Sources

1. Carbon Capture and Sequestration Tax Credit - Congress.gov
2. The Section 45Q Tax Credit for Carbon Sequestration
3. FAQs About 45Q: The Carbon Capture Tax Credit - PLI
4. Primer: 45q Tax Credit for Carbon Capture Projects