In order for the United States to remain a global leader in carbon capture and to achieve economy-wide deployment of these important technologies, a broad suite of policies is needed.

Below are resources to inform you about the current state and federal policy landscape for carbon capture, utilization, removal, and storage projects. This includes:

  • Policy Best Practices Checklist to help you build robust legislation based on the unique characteristics of your state
  • Federal Policy Blueprint outlining what other policies are needed at the national level to help ensure economy-wide deployment of carbon capture.

You can find state-level fact sheets for Regional Carbon Capture Deployment Initiative participants on our Regions page. These fact sheets include information about industrial facilities that may qualify for the federal 45Q tax credit for carbon capture projects, including the type of facility, emission reduction potential, the state’s current legislative landscape, and more.

Building on Bipartisan Consensus

Federal Policy Blueprint

The reformed and expanded federal tax credit for carbon capture projects (known as 45Q) provides a solid foundation for the growing US industry. The tax credit passed with bipartisan support as part of the federal budget bill in 2018. However, just as a portfolio of policies helped scale up other low and zero-carbon technologies like wind and solar, additional policies are needed for carbon capture.

The consensus Federal Policy Blueprint articulates a comprehensive and ambitious federal policy agenda to help achieve the goal of economywide carbon capture deployment to meet net-zero emissions by 2050. This blueprint was created by the Carbon Capture Coalition, a nonpartisan collaboration of more than 80 businesses and organizations building federal policy support for economy-wide deployment of carbon capture, transport, use, removal and storage. The blueprint reflects the consensus federal policy priorities of the Coalition and guides Coalition efforts to engage federal policymakers in seeking widespread adoption and deployment of carbon capture, removal and utilization technologies and associated development of CO2 transport and storage infrastructure. Convened by the Great Plains Insitute, you can visit the Coalition’s website for up-to-date information on federal legislation and other federal policy efforts.

A Checklist for State Policy Development

Policy Best Practices

State policies have an important role to play in complementing federal policy to help carbon capture projects cover cost gaps and achieve financial feasibility. 

The checklist below describes state policy options and best practices that can positively affect state economies by capturing carbon from industrial and power plant sources, putting the carbon to beneficial use, or permanently storing it in geologic formations or through enhanced oil recovery. 

State policies and incentives are needed that provide investment certainty, spur technology deployment and provide cost reductions, enhance project finance and feasibility, and encourage infrastructure deployment.

State Carbon Capture Work Group

The State Carbon Management Work Group (previously the State Carbon Capture Work Group) produced a comprehensive paper outlining state and federal policy recommendations in 2016. The group subsequently developed white papers on specific topics related to carbon capture.

In 2021, the signatory states of the CO2 Transport Infrastructure Memorandum of Understanding (MOU) released a Regional Carbon Dioxide (CO2) Transport Infrastructure Action Plan which includes potential policies for states to consider to facilitate carbon dioxide (CO2) transport and storage project deployment.