The Weekender - Special Edition, Part Three

December 15

Part Three

Welcome to the third in a series of special updates focused on the policy changes coming at agriculture in the weeks ahead.

Today’s update features a deeper dive into carbon, particularly 45Q - the section of the U.S. tax code that provides tax credits for projects that capture carbon dioxide (CO2) from industrial facilities as well as directly from the air.

45Q is intended to incentivize the development and deployment of carbon capture and sequestration technologies, reducing greenhouse gas emissions and mitigating climate change.

While most of you are likely unfamiliar with the term ‘45Q’ chances are you are familiar with one of the largest projects born of this legislation - Summit Carbon Solutions’ 2,500-mile pipeline which will transport CO2 from 57 corn ethanol plants across five states, for sequestration deep underground in central North Dakota.

Today’s update isn’t a sole focus on Summit, nor meant to sway your opinion one way or the other.

Instead, this is an educational carbon capture cheat sheet of sorts. I did the work so you don’t have to.

Plus, I was surprised to learn of 45Q’s origins (it’s not new) and you will be too.

If you missed the first two updates, check them out here:

Part One (California is to blame, plus a 40A & 45Z 101)

Part Two (unintended consequences, feedstock wars, policy wars & pen stroke risk)

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A surprising start

The 45Q tax credit was initially introduced in 2008 by the Energy Improvement and Extension Act, during George W. Bush’s second term.

However, it didn’t really gain legs until it was modified by subsequent legislation in the Bipartisan