S3778119th CongressWALLET

Carbon Resource Innovation Act

Sponsored By: Senator Sheehy, Tim [R-MT]

Introduced

Summary

Expands the Section 45Q carbon sequestration tax credit to include carbon captured in solid or liquid form and clarifies how that capture must be measured and verified. It adds a legal definition for "solid or liquid carbon capture facility" and sets a minimum of 1,000 metric tons of qualified carbon captured per year for those facilities. The changes apply to carbon captured after enactment.

Show full summary
  • Facility developers and operators: Facilities that capture carbon as a solid or liquid and meet the 1,000 metric ton annual threshold can now qualify for the 45Q credit if capture is measured at the source and verified at the disposal, injection, or utilization point.
  • Direct air capture projects and technology suppliers: The amendment explicitly treats direct air capture and solid or liquid capture facilities under the same credit rules, clarifying eligibility across different capture methods.
  • Storage operators and regulators: The bill requires underground storage chambers to be included under regulations for these facilities and defines captured amounts as the CO2 equivalent measured at the source and verified at disposal, injection, or use.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 0 benefits, 0 costs, 1 mixed.

Tax credit for solid and liquid capture

This bill would expand the Section 45Q tax credit to cover carbon captured as a solid or liquid at specially defined facilities. Captured carbon would have to be measured at the source and verified at the point of disposal, injection, or utilization. A facility would need to capture at least 1,000 metric tons of qualified carbon oxide in the taxable year to claim the credit. Regulations would also cover underground storage chambers to ensure the carbon does not escape into the atmosphere. These rules would apply to carbon captured after the date of enactment.

Sponsors & CoSponsors

Sponsor

Sheehy, Tim [R-MT]

MT • R

Cosponsors

  • Sen. Cantwell, Maria [D-WA]

    WA • D

    Sponsored 2/4/2026

  • Sen. Kelly, Mark [D-AZ]

    AZ • D

    Sponsored 3/19/2026

Roll Call Votes

No roll call votes available for this bill.

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