The Economic Impacts of CCUS Tax Credits
By Roger H. Bezdek, Ph.D.,
Management Information Services, Inc. (MISI)
Carbon capture, utilization and sequestration (CCUS) may be a technology whose time has come and gone, and come back again. Analysts and policy-makers have belatedly realized that any ambitious decarbonization goals are simply not feasible without CCUS. Even advocates of the “Green New Deal” have (grudgingly) accepted the need for CCUS as a necessarily large part of the program.
Here we assess the likely economic impacts of the 45Q CCUS tax credits enacted in 2018 and compare these with the impacts of those proposed in 2017. The enacted 45Q tax credits (ETC) provided less incentives than those proposed in 2017 (PTC) – primarily because they contain “sunset” provisions requiring that facilities begin construction by Jan. 1, 2024 to be eligible for the tax credit. The salient question is thus: “How do the likely economic and job impacts of the 2018 enacted 45Q tax credits compare to those proposed in 2017?”
For More, Please Click Here