Over 125 Groups Urge Congress to End 45Q Carbon Sequestration Tax Credits
More than 125 environmental and advocacy organizations have called on Congress to eliminate 45Q tax credits, arguing they support uneconomic oil extraction and burden taxpayers. The credits incentivize carbon dioxide sequestration and enhanced oil recovery, which the groups deem fiscally irresponsible. They cite projected expenditures exceeding $43.6 billion from 2024-2034, calling for Congress to protect taxpayers and communities by reforming federal energy and tax policy.
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More than 125 environmental and advocacy groups have asked Congress to end 45Q tax credits, which they claim support uneconomic oil extraction and cost taxpayers. These credits encourage carbon sequestration and enhanced oil recovery, where CO2 is injected into oil wells to increase productivity.
The groups argue that such funding is fiscally irresponsible, estimating 45Q expenditures will exceed $43.6 billion from 2024-2034. They emphasize the need to eliminate the enhanced oil recovery portion of the tax credit to safeguard public interest and restore integrity to federal energy policies amid rising costs for families.
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