carbon capture, utilization, and storage ↔ tax credits

Relations (1)

related 2.00 — strongly supporting 3 facts

Tax credits are proposed as a financial mechanism to incentivize carbon capture, utilization, and storage by bridging price differentials [1], potentially offsetting costs through revenue from enhanced oil recovery [2], or by reallocating existing subsidies [3].

Facts (3)

Sources

The Power of Change: Innovation for Development and Deployment ... nationalacademies.org National Academies of Sciences, Engineering, and Medicine 3 facts

claimSome analyses suggest that tax credits for carbon capture could be revenue-neutral or revenue-positive for the federal government over time because the government derives revenue from the additional oil produced via enhanced oil recovery.

claimTax credits for carbon capture could be funded by eliminating current subsidies for incumbent, mature technologies.

perspectiveCongress could implement tax credits to bridge the price differential between the market value of carbon dioxide used for enhanced oil recovery and the costs of carbon capture.