The Congressional budget deal passed early Friday morning includes funding for technology known as carbon capture, a method of altering fossil fuel emissions that could be developed to stem the effects of climate change.
The deal expands and extends tax credits for the development of carbon capture technology, which aims to separate carbon dioxide from oil and gas emissions before they're released into the atmosphere. The technology has not been widely adopted, but some companies have begun using it in recent years.
A 2008 law created what's known as the Section 45Q tax credit, an incentive that allowed companies that captured carbon to collect between $10 and $20 a ton until the industry captured a total of 75 million tons. It has nearly crossed that threshold.
Under the new law, new carbon capture facilities are eligible for the credits if construction begins before 2024. Qualified facilities can collect the credit for up to 12 years. "This can serve as a template both for the commercialization of technologies preventing an enormously consequential amount of CO2 from going into the atmosphere as well as future collaboration in Congress," Jay Faison, founder of clean energy advocacy group ClearPath Action, said in a statement.