📊 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.
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