“A bill to amend the Internal Revenue Code of 1986 to create a credit for carbon removal and storage for forest residues from wildfire management.”
No CRS summary available for this bill.
This section establishes a new general business tax credit under new IRC §45BB for qualified carbon dioxide equivalent captured from qualified forest residue biomass (i.e., forest residues from thinning trees no greater than 8 inches in diameter at breast height and other residues such as limbs and bark that meet specified sustainability standards and are produced from U.S. Forest Service or Bureau of Land Management wildfire hazard reduction or ecological restoration activities) using biomass equipment placed in service on or after enactment at a qualified forest residue biomass carbon removal and storage project, and stored in secure geological storage ($36 per metric ton) or via long-duration utilization ($12 per metric ton), with amounts inflation-adjusted after 2026. A qualified project must store at least 1,000 metric tons per taxable year and may aggregate multiple facilities. The credit amount is increased fivefold for projects meeting prevailing wage and apprenticeship requirements adapted from IRC §45Q(h). For projects placed in service before enactment, only incremental capture above prior capacity counts.