The U.S. government has reaffirmed its bipartisan support for carbon capture and storage (CCS) by preserving – and in some cases increasing – the federal Section 45Q tax credit in the “One Big Beautiful Bill Act,” signed into law by President Trump on July 4, 2025. The Global CCS Institute welcomes this continued support, recognizing the 45Q tax credit as a cornerstone policy crucial for accelerating deployment across the country. Extending it is key to maintaining industrial competitiveness, energy security, and economic resilience.
Global CCS Institute CEO Jarad Daniels said, “Deployment of CCS can strengthen America’s energy future, create jobs, and help solidify its position as a leader in the global low-carbon economy. U.S. policymakers continue their longstanding bipartisan support for CCS by sustaining and raising the 45Q tax credit in the One Big Beautiful Bill Act.”
The bill maintains the 45Q tax credit for point-source capture at $85/ton and direct air capture (DAC) at $180/ton in dedicated geologic storage, preserves transferability, and keeps the inflation adjustment date of 2027 with a base index year of 2025. The tax credit now includes parity for the utilization of carbon dioxide (CO2). In this new bill, CO2 used or converted into valuable products or injected and geologically stored in a qualified enhanced oil recovery or natural gas recovery project site will qualify for the same dollar value credit as CO2 that is permanently sequestered in a dedicated geologic storage site. The bill also introduces new restrictions for Foreign Entities of Concern[1].
The Global CCS Institute is now tracking 70 operational CCS projects globally, with a combined capture capacity of 61 million tons per annum (Mtpa) – that’s equivalent to capturing and storing nearly 1.5 times the total annual CO2 emissions from New York City every year. The U.S. remains the global leader in CCS deployment, with 33 operational projects, 19 under construction, and over 300 in various stages of development.[2]
The Institute applauds U.S. policymakers for preserving and strengthening this crucial policy for CCS deployment and is not alone. Many U.S. organizations have issued statements or conducted analysis that highlights the importance of the 45Q tax credits for accelerating the deployment of carbon management technologies within the U.S. Some of these organizations include the Carbon Capture Coalition, Carbon Utilization Research Council, Clean Air Task Force, Clear Path and Rocky Mountain Institute.
[1] “Foreign Entities of Concern” includes any company that is a “Specified Foreign Entity” or a “Foreign-Influenced Entity”. For more information, please see the Bipartisan Policy Center definitions.
[2] Global CCS Institute / CO2RE Database Facilities as of June 2025
