Hoeven Helps Introduce Bipartisan Legislation to Enhance 45Q & 48A Tax Credits to Benefit Coal Producers

WASHINGTON – Senator John Hoeven this week joined Senators Shelley Moore Capito and Sheldon Whitehouse, along with Senators Kevin Cramer, John Barrasso, Tina Smith and Joe Manchin, in introducing legislation to enhance the 45Q and 48A tax credits to better support the development and implementation of carbon capture, utilization and storage technologies (CCUS). Specifically, the legislation would: 

  • Provide a direct payment option for the 45Q and 48A CCUS tax incentives.
  • Extend the 45Q commence construction deadline for five years, through January 1, 2029.
  • Allow the 45Q credit to offset tax obligations arising from the Base Erosion Avoidance Tax (BEAT), consistent with BEAT exceptions made for wind and solar energy production under the 2017 Tax Cuts and Jobs Act.

“This legislation would make the 45Q and 48A tax credits more accessible and benefit our coal producers, helping them to better take advantage of these critical revenue streams through the implementation of CCUS technology,” said Senator Hoeven. “These tax credits are a central part of our efforts to ensure our nation can reduce emissions while continuing to harness its abundant coal resources, which provide the affordable and reliable power that homes and businesses rely on every day.”

Enhancing 45Q & 48A Tax Credits 

This legislation builds on Hoeven’s previous work to advance enhancements for the 45Q and 48A tax credits. This includes his efforts with Assistant Secretary of Fossil Energy Steven Winberg, as well as legislation he introduced with Senator Tina Smith (D-Minn.). Further, Hoeven worked closely with the White House, Treasury Department and Energy Department to get the 45Q tax credit implemented in a manner that: 

  • Makes CCUS projects more commercially-viable.
  • Provides an important revenue stream to coal producers.
  • Ensures the tax credit works for both long-term underground storage and enhanced oil recovery. 

Ensuring a Fair Value for Coal

Hoeven also continues working to ensure coal is fairly valued as a reliable and affordable source of baseload power and to ensure coal’s continued role in the nation’s energy mix. To this end, Hoeven has:

  • Repeatedly raised this issue with the Federal Energy Regulatory Commission (FERC) and the administration, including Energy Secretary Dan Brouillette.
    • Most recently, Hoeven led his Senate colleagues in pressing FERC to outline the measures it will take to evaluate grid resilience, address the challenges facing baseload power producers and strengthen the reliability of the grid.
  • Supported the University of North Dakota’s Energy & Environmental Research Center (EERC) in developing CCUS technology to enable greater energy production with fewer emissions.  
    • To date, Hoeven has secured $43 million for Project Tundra, an effort led by the EERC and Minnkota Power.
  • Introduced an amendment, along with Senator Cramer, to repeal the one-year extension of the Wind Production Tax Credit (PTC).
  • Provided much-needed regulatory relief for the nation’s energy producers, including repealing burdensome rules on coal producers.