More than 100 elected officials from Midwestern and Western states have banded together in a forceful appeal to Congress, urging the removal of federal provisions that would override local control over carbon pipeline projects and calling for the termination of the 45Q tax credit for carbon capture which they see as controversial.
In a joint letter, the coalition of state and local representatives voiced deep concern over federal attempts to bypass state and community-level permitting processes for carbon dioxide infrastructure. “Our communities deserve a say in infrastructure projects that impact our land, safety, and economy,” the letter stated. “This blatant display of federal overreach would strip rural communities of this right.”
Multiple 45Q credit repeal initiatives
At the center of the controversy is the 45Q tax credit—a policy that offers substantial tax benefits for carbon capture and storage (CCS) projects. Critics argue the program not only drains federal resources but also endangers public health and safety. “If Congress is serious about reducing the federal budget and eliminating waste, then it should look first and foremost at the 45Q program,” the officials wrote, citing a federal report highlighting fraudulent claims and a projected taxpayer cost of $853 billion.
The group also pointed to a 2020 pipeline rupture in Mississippi as evidence of the risks associated with CCS infrastructure, noting that carbon dioxide leaks can disable vehicles and hinder emergency response.
As legislative negotiations continue, these officials are calling for a renewed focus on local governance, fiscal prudence, and public safety—principles they argue are undermined by the current carbon pipeline agenda.
The initiative joins a proposal from Representative Scott Perry, a Republican from Pennsylvania, who introduced the 45Q Repeal Act in March 2025, a bill that aims to abolishing the Section 45Q tax credit, which supports carbon capture, utilization, and storage (CCUS) technologies.
House and Senate approaching final draft
Last week saw a draft text provided by the Senate Finance Committee that set out the new scope of the 45Q tax credit, alongside those for renewables.
The Senate proposal shows no indication of removing the 45Q carbon credits but does narrow its eligibility. According to the latest draft the payments for CO2 utilization are to match those for storage—$85/ton for point-source capture and $180/ton for direct air capture—while delaying inflation adjustments, prompting industry concern. The bill also allows publicly traded partnerships to classify carbon capture as qualifying income, offering U.S. firms some tax advantages.
Overall the text hints of a consensus to keep the 45Q, unlike credits for solar and wind energy.
