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illuminem summarizes for you the essential news of the day. Read the full piece on POLITICO or enjoy below:
🗞️ Driving the news: Representatives Scott Perry (R-Pa.) and Ro Khanna (D-Calif.) have introduced the 45Q Repeal Act, aiming to eliminate the federal tax credit that incentivizes carbon capture and storage (CCS) by offering credits based on the amount of carbon dioxide captured and stored by companies
🔭 The context: The 45Q tax credit has been a bipartisan mechanism to promote CCS technologies, intended to reduce greenhouse gas emissions by encouraging companies to capture and store CO₂
• However, critics argue that it distorts energy markets and leads to inefficient allocation of resources
• The Treasury Inspector General for Tax Administration previously identified nearly $1 billion in claims for unverified activities under this credit
🌍 Why it matters for the planet: Repealing the 45Q tax credit could significantly impact the future of CCS projects, potentially slowing efforts to mitigate climate change by reducing incentives for technologies that capture and store CO₂ emissions
• This move raises concerns about the U.S.'s ability to meet its climate goals and manage carbon emissions effectively
⏭️ What's next: The proposed legislation will undergo debate in Congress, where lawmakers will weigh the benefits of the 45Q tax credit against concerns about its efficacy and financial implications
• The outcome will influence the direction of U.S. climate policy and the role of CCS in reducing emissions
💬 One quote: "The American People demand that we cut waste, fraud, and abuse, and don’t want their tax dollars being used to prop up inefficient and market-distorting technology" — Rep. Scott Perry (R-Pa.)
📈 One stat: The Institute for Energy Economics and Financial Analysis estimates that the 45Q credits could cost taxpayers as much as $800 billion over the next 18 years, averaging about $6 billion per subsidized carbon capture project
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