The Section 45Q tax credit for carbon dioxide utilisation has been increased to match the $85 per tonne rate for sequestration, creating a level playing field in the merchant market.
Under the previous law, the tax credit favoured CO₂ sequestration at $85 per tonne, while CO₂ utilisation, which supports critical markets such as food, beverage, and medical, was only eligible for $60 per tonne.
However, the law was changed when President Trump signed the One Big Beautiful Bill Act on 4 July.
The CO2 Solutions Coalition, a CO2-focused lobbying arm of the Compressed Gas Association (CGA), had been lobbying for credit parity in January 2024.
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