Section 45Q Tax Credit

The Section 45Q tax credit incentivizes the capture and underground storage of carbon dioxide (CO₂) emissions from industrial sources and power plants. It provides a tax credit per ton of CO₂ permanently sequestered, encouraging companies to reduce their greenhouse gas emissions. This helps combat climate change by promoting cleaner energy and industrial practices. The credit amount varies based on the project’s specifics and the duration of storage, making it more financially attractive for companies that invest in capturing and securely storing carbon rather than releasing it into the atmosphere.