The Internal Revenue Service (IRS) is currently deliberating guidance for the expanded 45Q Carbon Oxide Sequestration tax credit, which has recently increased in both credit amount and availability as stipulated in the Inflation Reduction Act.

Taxpayers are concerned that despite billions of taxpayer dollars in subsidies, carbon capture has failed to deliver tangible climate impacts and has instead further incentivized the production of oil and gas. The captured carbon is predominantly used to extract additional oil and gas from well sites, thereby increasing our reliance on fossil fuel systems and raising concerns within communities nationwide. Taxpayers and communities find themselves forced to subsidize carbon capture and storage initiatives without any clear, transparent, or accountable results.

Download the policy brief here or read it below.