U.S. Senator Kevin Cramer (R-ND), a Senate Environment and Public Works (EPW) Committee member, yesterday led a bipartisan letter to Treasury Secretary Steven Mnuchin and Internal Revenue Service (IRS) Commissioner Charles Rettig urging them to amend the IRS’s safe harbor guidance to allow carbon capture, utilization and sequester projects an additional year of eligibility. The letter follows the IRS granting certain renewable energy projects an extension in May.
“Extending the safe harbor to qualify for the 45Q tax credit will create and protect thousands of jobs, provide regulatory certainty, and further incentivize carbon capture, utilization and sequestration projects to reduce emissions,” the senators wrote. “As you finalize carbon capture, utilization and sequester regulations, the safe harbor guidance IRS issued in February should be amended to provide carbon capture, utilization and sequester projects an additional year of eligibility.”
Senator Cramer voiced his support for Treasury’s proposed rule at a Senate Budget Committee hearing in June. The Senator has used his seats on the Senate Banking and Senate EPW committees to work with the Trump Administration and be a leading voice in support of moving these regulations forward. North Dakota energy leaders thanked Senator Cramer for his work on this issue and also offered statements supporting the proposal. Learn more here.
Senator Cramer is joined on the letter by Senators Sheldon Whitehouse (D-RI), Shelley Moore Capito (R-WV), John Hoeven (R-ND), John Barrasso (R-WY), Tina Smith (D-MN), Bill Cassidy (R-LA), and Joe Manchin (D-WV).
The letter was submitted as an official comment on the notice of proposed rulemaking for the 45Q carbon capture tax credit.