WASHINGTON, D.C. — Today, U.S. Representatives David Schweikert (AZ-01) and Terri Sewell (AL-07) introduced the Captured Carbon Utilization (CCU) Parity Act of 2023, legislation to create parity between the credit value for utilization and sequestration in the 45Q carbon capture tax credit. 

“Storing carbon underground is an innovative way to help industry reduce our carbon footprint on a larger scale,” said Rep. Schweikert. “I am proud to introduce this bipartisan legislation promoting responsible carbon removal technology to ensure we have a cleaner environment and a stronger economy by balancing the tax credits for carbon capture and sequestration.”

“It is critically important that Congress supports innovative approaches to reduce emissions, and carbon capture technology is essential to that fight,” said Rep. Sewell. “This legislation expands incentives for businesses across a range of industries to invest in state-of-the-art technologies to lower carbon emissions.”

The Senate companion bill was introduced by U.S. Senators Bill Cassidy (R-LA) and Sheldon Whitehouse (D-RI). 

Background: The Carbon Capture and Utilization Parity Act increases the tax credit for carbon capture and utilization to match the incentives for carbon capture and sequestration for both direct air capture and the power and industrial sectors. The legislation establishes parity between 45Q carbon capture tax credits for utilization and sequestration and support using captured carbon in the manufacturing of products to lower the emission intensity of production.