📊 CCUS Policy Matrix: U.S. Federal Support Landscape (2025)

Policy/Program	Administering Body	What It Covers	Key Benefits	Challenges/Limitations
Section 45Q Tax Credit	IRS / Treasury	Tax credit per metric ton of CO₂ captured and either stored or utilized	- Up to $85/ton (storage) - $60/ton (EOR) - Up to $180/ton for Direct Air Capture (DAC) - Transferability and Direct Pay options	- Requires compliance with labor standards - Project-level validation and monitoring needed - Credit value drops after 12 years
Inflation Reduction Act (IRA)	Congress (implemented by multiple agencies incl. DOE, IRS)	Broad climate and energy funding including 45Q enhancements	- Expands 45Q - Opens CCUS eligibility to smaller emitters - Unlocks billions in project funding	- Political uncertainty (subject to repeal/changes) - Implementation delays possible
Infrastructure Investment and Jobs Act (IIJA)	DOE / EPA / DOT	~$6 billion in funding for CCUS infrastructure, hubs, and research	- CO₂ transport and storage hubs - Federal loan guarantees - Pilot project funding	- Bureaucratic delays - Highly competitive funding rounds
DOE CarbonSAFE Program	Department of Energy	Supports large-scale CO₂ storage site development	- Covers site characterization, permitting, and community engagement	- Requires long timelines - Public opposition possible
DOE Loan Programs Office (LPO)	Department of Energy	Low-interest loans and loan guarantees for energy infrastructure	- Helps de-risk large-scale CCUS projects	- High application burden - Long review timelines
EPA Class VI Wells Program	Environmental Protection Agency	Permits for CO₂ injection into deep saline formations	- Required for secure, long-term CO₂ storage	- Complex and slow permitting - State-level primacy varies
Sustainability-Linked Loans (SLLs)	Private sector (banks + borrowers)	Loans with interest rates tied to emissions performance	- Aligns financing with ESG targets - Increasing availability	- Needs robust emissions tracking and third-party verification
Green Bonds	Issuers (corporates, governments)	Debt issued to finance climate-aligned projects	- Attracts ESG-focused capital - Can fund CCUS infrastructure	- Requires certification - Market appetite varies
State-Level Incentives	TX, LA, ND, WY (among others)	Tax abatements, grant programs, CCUS-specific permitting support	- Fast-track permitting (e.g., Class VI primacy in ND/WY) - Local workforce funding	- Varies widely by state - Local political risk

📌 Quick Notes for Learning & Strategy

• 45Q is the single most important incentive for CCUS viability—understanding its mechanics is key.
• Direct Pay + Transferability under IRA helps non-taxable entities (e.g., co-ops, startups) monetize CCUS credits.
• EPA Class VI permitting is often a bottleneck; only a few states (like North Dakota and Wyoming) have primacy to issue permits directly.
• Private finance tools like SLLs and green bonds are expanding rapidly—aligning project finance with ESG performance.