Carbon capture group responds to IRS report

Source: BY KELSEY TAMBORRINO, Politico • Posted: Monday, May 11, 2020

The Carbon Capture Coalition will send letters today to Treasury Secretary Steven Mnuchin and IRS Commissioner Charles Rettig, as well as New Jersey Sen. Bob Menendez addressing the recent IRS inspector general report that found nearly $900 million in claimed carbon capture tax credits over a decade failed to prove they successfully sequestered the carbon dioxide. The letter to Menendez backs his “efforts to ensure integrity” in the so-called 45Q program as the IRS writes new rules to allow companies to take advantage of an expansion of the tax credit. But the coalition also says it disagrees with Menendez’s call to suspend use of the 45Q credit for enhanced oil recovery, as it “would penalize those companies that followed the rules in the past, as well as those currently developing new projects under the revamped 45Q program.”