Read twice and referred to the Committee on Finance.
Creates a new tax credit (section 45BB) for carbon removal and storage from qualified forest residues sourced from wildfire hazard reduction and ecological restoration. Credit values are $36/ton for secure geological storage and $12/ton for long-duration utilization, with inflation adjustments and a potential 5x boost for certain facilities.
Environmental safeguards versus speed and scale of project deployment
Relative to its intended legislative type, this bill is a well-specified amendment to the Internal Revenue Code creating a new tax credit.
Creates a new tax credit (section 45BB) for carbon removal and storage from qualified forest residues sourced from wildfire hazard reduction and ecological restoration.
Credit values are $36/ton for secure geological storage and $12/ton for long-duration utilization, with inflation adjustments and a potential 5x boost for certain facilities.
The bill defines eligible biomass, projects, storage longevity (1,000-year geological, 100-year long-duration), bans credits for enhanced oil recovery, limits credits to U.S. projects, and requires Treasury rulemaking on sustainability standards, lifecycle analysis, and monitoring, reporting, and verification.
Technically detailed and policy-focused but creates sizable tax expenditures; passage likely requires broader legislative vehicle or bargaining.
Relative to its intended legislative type, this bill is a well-specified amendment to the Internal Revenue Code creating a new tax credit. It provides concrete credit rates, eligibility definitions, coordination rules with existing tax incentives, MRV and lifecycle-analysis requirements, and clear delegation to implementing agencies with specified timelines and public-comment procedures. The bill incorporates several safeguards (recapture, prohibition for enhanced recovery, domestic-only rule) and integrates closely with existing statutory provisions.
Environmental safeguards versus speed and scale of project deployment
These are examples from the analysis, not a ranked list of the most-affected groups.
Environmental safeguards versus speed and scale of project deployment
Generally supportive because it funds carbon removal tied to wildfire risk reduction and requires science-based standards and MRV.
Concerned about potential ecological harms, biomass overharvest, and whether credits favor industry over community restoration.
Will press for strong sustainability rules and strict monitoring.
Cautious support if safeguards and clear, implementable rules exist.
Views credit as a pragmatic tool to reduce wildfire fuels and spur carbon removal, but worries about fiscal cost, program integrity, and unintended ecological tradeoffs.
Skeptical of creating a new federal tax credit and expanded regulatory role.
May welcome wildfire fuel reduction and local jobs but worries about government picking winners, fiscal cost, and heavy federal rulemaking.
Reached or meaningfully advanced
Reached or meaningfully advanced
Still ahead
Still ahead
Still ahead
Technically detailed and policy-focused but creates sizable tax expenditures; passage likely requires broader legislative vehicle or bargaining.
The bill has not accumulated any surfaced votes yet.
Environmental safeguards versus speed and scale of project deployment
Technically detailed and policy-focused but creates sizable tax expenditures; passage likely requires broader legislative vehicle or bargai…
Relative to its intended legislative type, this bill is a well-specified amendment to the Internal Revenue Code creating a new tax credit. It provides concrete credit rates, eligibility definitions, coordination rules w…
Go beyond the headline summary with full stakeholder mapping, legislative design analysis, passage barriers, and lens-by-lens tradeoff breakdowns.