Carbon tax credits focus of new Sheehy bill

Jordan Hansen

(Daily Montanan) Carbon capture tax credits are the focus of a new bill co-sponsored by Montana U.S. Sen. Tim Sheehy, a Republican, and Sen. Maria Cantwell, a Washington Democrat.

The bill, called the Carbon Resource Innovation Act, seeks to make the process easier for new carbon capture technologies to access tax credits.

The program is called the 45Q Carbon Tax Credit. The program seeks to incentivize industrial companies that emit carbon dioxide, a major greenhouse gas, to capture it, as well as companies focused specifically on capturing carbon dioxide directly from the atmosphere.

Companies that develop new carbon capture technologies have to come back to Congress to ask to be included in the carbon tax credits, a press release from Sen. Sheehy’s office said.

Additionally, Sheehy painted it as a move to help address wildfire concerns.

“As we continue to enact commonsense reforms to make our forests and communities more resilient against the growing threat of wildfire, it is critical we use the innovative technology and tools at our disposal to ensure proper fuels management,” Sheehy said in a press release. “I’m proud to lead yet another bipartisan bill to achieve that goal and keep our treasured landscapes, homes, and businesses safe from the threat of wildfire.”

Sheehy’s release pointed to several technologies currently excluded from carbon tax credits, including Methane pyrolysis and Biomass Carbon Removal and Storage.

Methane pyrolysis produces hydrogen by splitting methane, hydrogen and solid carbon. The process results in carbon as a solid form and has several industrial uses — because the resulting form is solid, not a “gaseous form” that would be covered under current law, the release from Sheehy’s office said.

Biomass Carbon Removal and Storage, meanwhile, converts already captured carbon dioxide into, “a carbon-rich solid or liquid” which has some industrial use, or will be put in specially designed vaults, the release said.

“By putting these undervalued carbon resources to work, this bill will create new income streams for American farmers and drive wildfire mitigation by creating a market for low- and no-value material, reducing disposal costs,” the press release said.