Cramer Calls for Administrative Action and Receives Favorable Report on CO2 Tax Credit

Statement

Congressman Kevin Cramer sent a letter to Treasury Secretary Steven Mnuchin today urging specific direction to ensure the 45Q tax credit for capturing and storing carbon dioxide is workable for energy producers.

"There is great potential in this country, in North Dakota and other oil and gas producing states, for increasing our domestic energy production and our energy security," said Cramer. "I look forward to working with the Administration to implement the expanded section 45Q tax credit and improving our production capability."

In his letter to Mnuchin, Cramer emphasized the requirements for reporting such activity to the IRS must be made clear or the credit will remain useless to most of the carbon capture, utilization and storage (CCUS) industry. The IRS policy effectively treats any CO2 injection site seeking to apply the section 45Q credit -- including an EOR well -- as a waste disposal site rather than a hydrocarbon recovery operation.

Cramer introduced a bill to carry out this fix at the Treasury Department so it can endure beyond this Administration. Yesterday he received a favorable report from the Joint Committee on Taxation stating, "the proposal would have no significant revenue effect," meaning tax revenue would not be significantly different than current policy should Cramer's bill be enacted. A companion bill has been introduced by Senator John Hoeven (R-ND).

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