Expansion of tax credits for carbon capture & sequestration could spur development of coal-fired power plants

A little-known provision of the recently enacted federal budget bill extends and expands tax credits for capturing CO₂, which could trigger investment in new coal-fired power plants, writes Energy Institute Research Associate Josh Rhodes. The credits, which in effect put a price on carbon, can be used to sequester the CO₂ in geological formations, or sell it for enhanced oil recovery. While the environmental community has long sought a price on carbon, it seems conflicted about this tax credit, while the energy industry is cautiously optimistic. For more, read Rhodes’ analysis.