S. 3778 — Carbon Resource Innovation Act

This section expands the Section 45Q carbon oxide sequestration tax credit to include qualified carbon oxide captured at solid or liquid carbon capture facilities (i.e., facilities using equipment to capture carbon in solid or liquid form that would otherwise be released into the atmosphere as a carbon oxide, including those achieving net carbon reductions relative to a baseline system), effective for carbon captured after enactment. Specifically, the section (1) defines qualified carbon oxide for such facilities as carbon captured in liquid or solid form (that would otherwise be released as greenhouse gas), measured at the source of capture and verified at disposal, injection, or utilization; (2) applies the credit to such facilities that capture at least 1,000 metric tons of qualified carbon oxide annually; (3) defines relevant terms including "capture" (enabling disposal, injection, or utilization) and "carbon capture equipment"; and (4) specifies that the credit amount equals the carbon dioxide equivalent of verified metric tons of captured carbon, with secure geological storage including underground chambers preventing atmospheric escape. (Thus, taxpayers operating such facilities may claim credits of up to $60 per metric ton of CO2-equivalent securely stored (increased to $85 for direct air capture under prior law) or $36 per metric ton utilized.)