Skip to content
The inflation bill has an advantage for some oil companies

The so-called Cut Inflation Act targets climate change, but the fossil fuel industry could also get a nice bonus.

The tax and spending proposal, for which Sen. Joe Manchin showed support last week, would increase the size of carbon capture and sequestration tax credits – known as 45Q – and extend the deadline eligibility for them to 2033 from 2026. It also would give developers the option to receive the value of tax credits as a direct payment from the government during the first five years of a project. Although the bill includes elements that would increase costs for the hydrocarbon industry, such as a levy on methane emissions, the inclusion of larger subsidies for carbon capture could end up prolonging the life – and the relevance – of the oil and gas industry in a net zero future.


Not all news on the site expresses the point of view of the site, but we transmit this news automatically and translate it through programmatic technology on the site and not from a human editor.