President Donald Trump is boosting the tax incentive for carbon capture and storage — even as he axes the federal funding and climate policies that could help the nascent industry grow.
The expansion of the 45Q credit under the One Big Beautiful Bill Act is the latest in a disjointed approach to carbon capture and storage (CCS) that’s becoming a feature of the second Trump administration.
On one level, Trump’s EPA has pushed to give more states the authority to permit carbon storage wells — a move cheered by developers who say the federal government takes too long to issue the approvals. The boosted tax incentive could likewise make CCS projects easier to fund and develop.
But the Department of Energy has also canceled $3.7 billion in awards for carbon capture and other decarbonization projects, while the administration has proposed slashing funding for the agency’s Office of Fossil Energy and Carbon Management. And EPA’s proposal to revoke limits on power plants’ climate pollution — along with its broader aims to eliminate most U.S. climate rules — undermines a potential customer base for CCS.
