Tax Extender Issue Regarding Carbon Emissions Reporting Rollback Tests Alliance

By Dean Scott, Bloomberg.

A GOP-led effort to offer simpler greenhouse gas emissions reporting for oil and gas operations that capture and store carbon dioxide—part of a Senate tax extenders package—is testing a bipartisan coalition backing more generous tax credits.

The tax extender bill, introduced last month by Senate Finance Committee Chairman Orrin Hatch (R-Utah), would extend several expired tax credits for renewable energy and biodiesel and also would significantly increase credits for carbon capture and storage efforts under Section 45Q of the tax code.

Boosting carbon capture credits is backed by the oil and gas industry and an unlikely alliance of Democratic climate hawks such as Sen. Sheldon Whitehouse of Rhode Island, and Republican climate policy critics such as Sen. John Barrasso of Wyoming.