US Democrats Court Manchin for Support on Carbon Capture Tax Credit

The carbon sequestration tax credit, which rewards industries for installing equipment to capture CO₂ emissions and store them underground, is a crucial part of the “Build Back Better” bill being crafted in Congress.

Jarrett Renshaw and Timothy Gardner, Reuters

Democrats are close to finalizing a plan supported by U.S. Senator Joe Manchin that would boost tax credits for power plants that capture carbon, as the White House courts him to pass a multi-trillion spending plan, two sources said.

The carbon sequestration tax credit, which rewards industries for installing equipment to capture CO₂ emissions and store them underground, is a crucial part of the “Build Back Better” bill being crafted in Congress, which aims to tackle the impacts of climate change by pushing companies to curb greenhouse gases.

Manchin, a moderate Democrat from West Virginia, the second biggest coal-producing state, has been a key obstacle in getting the spending plan passed through Congress. He has said he wants Democrats to trim it from $3.5 trillion to about $1.5 trillion and wants a large say in the energy provisions.

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