More than 40 Iowa Republican lawmakers are urging Senator Joni Ernst to help repeal a federal tax credit for carbon sequestration projects as part of the budget reconciliation bill now before the Senate. The 45Q tax credit offers $85 per metric ton of captured CO2, with pipeline developers like Summit Carbon Solutions standing to gain an estimated $1.5 billion annually.
Supporters of the credit, including Summit and some biofuels groups, say the incentive is critical for keeping Iowa’s ethanol industry competitive in low-carbon fuel markets. They argue the pipeline will help reduce emissions, preserve corn demand, and protect ethanol jobs.
The lawmakers say the credit encourages private companies to use eminent domain to seize farmland, jeopardizes property rights, and risks public safety. They argue the credit fuels what they call a “federally funded nightmare” and warn of long-term costs to taxpayers.
