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US SB1842
Bill
Status
Introduced
5/21/2025
Primary Sponsor
Sheldon Whitehouse
Click for details
AI Summary
- Creates a new tax credit (Section 45BB) of $36 per metric ton of CO2 equivalent stored in secure geological storage, or $12 per metric ton for long-duration utilization such as biochar or durable building materials
- Applies to carbon captured from qualified forest residue biomass, defined as thinnings from trees no greater than 8 inches in diameter and other residues (limbs, bark) from wildfire hazard reduction or ecological restoration activities
- Credit amounts increase 5x for projects meeting prevailing wage and apprenticeship requirements, and are adjusted annually for inflation starting in 2026
- Requires minimum storage of 1,000 metric tons of CO2 equivalent annually; geological storage must demonstrate 1,000-year security while long-duration utilization requires 100-year retention
- Mandates Treasury Department regulations within 6 months for sustainability standards and carbon verification, including lifecycle analysis and third-party monitoring, with 60-day public comment periods and 5-year reviews
Legislative Description
Wildfire Reduction and Carbon Removal Act of 2025
Taxation
Last Action
Read twice and referred to the Committee on Finance.
5/21/2025
Committee Referrals
Finance5/21/2025
Full Bill Text
No bill text available