New US Budget Includes Alternative, Turbine and Carbon Capture Tax Credits

February 9, 2018

 

President Donald Trump has signed the new House and Senate budget that includes an extension of tax credits for buyers of fuel cell vehicles of up to $40,000 (depending on the weight of the vehicle, the tax credit could be as low as $4,000).

It also includes extension of a 10% credit (up to $2,500) for the purchase of two-wheeled electric vehicles.

Perhaps most important among the energy-related provisions of the budget are the extensions of tax credits for every ton of carbon dioxide that is captured and then used for enhanced oil recovery (as is being done at NRG‘s and JX Nippon‘s Petro Nova plant near Houston), or is sequestered (such as in long-term storage) or used to create another end product.

The credit extends for a dozen years and can be used by any facility that began carbon capture construction within the past seven years.

New carbon capture projects have until the end of 2023 to begin building to take advantage of the credit.

Among those who shepherded the credits through the bill-writing process were by West Virginia Republican Senator Shelley Moore Capito, Rhode Island Democrat Senator Sheldon Whitehouse, North Dakota Democrat Senator Heidi Heitkamp, and Wyoming Republican Senator John Barrasso.

There are also tax credit extensions for the installation of micro turbines, which could play a part in the development of microgrids, and for the installation of Combined Heat and Power turbines.