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Carbon Capture Backers Thrilled With Biden Infrastructure Plan

March 31, 2021, 10:10 PM

Proponents of subsidies for technologies that capture and store carbon dioxide rejoiced Wednesday after the White House signaled support for allowing developers to get cash in lieu of tax offsets.

Under current law, tax credits for carbon capture—a technology embraced by oil and gas giants and hailed by proponents as a partial solution to global climate change—are generally transferred to financiers with taxes to offset. Carbon capture projects are expensive and often not economically viable without the tax benefit.

The Biden administration’s new plan for a massive infrastructure package includes “direct pay” for these credits, which would allow developers to ...