Senator Sheehy (R-MT) joined Senator Maria Cantwell (D-Wash.) in introducing the Carbon Resource Innovation Act, a bipartisan bill designed to expand the 45Q carbon capture tax credit to include innovative technologies that capture carbon in solid or liquid forms. Supporters say the legislation will incentivize responsible forest management, reduce wildfire risk, and create economic opportunities across the country.
“As we continue to enact commonsense reforms to make our forests and communities more resilient against the growing threat of wildfire, it is critical we use the innovative technology and tools at our disposal to ensure proper fuels management,” Sheehy said. “I’m proud to lead yet another bipartisan bill to achieve that goal and keep our treasured landscapes, homes, and businesses safe from the threat of wildfire.”
The 45Q carbon capture tax credit currently incentivizes companies to capture CO₂ from industrial emitters or directly from the atmosphere, either for utilization or geological storage. While revised over the years by both Republican and Democratic lawmakers, the credit still primarily applies only to carbon captured in gaseous form. Technologies that capture carbon as solids or liquids are currently excluded, even though they reduce CO₂ emissions and can support wildfire fuels reduction from forestry residues.
The Carbon Resource Innovation Act would make these innovative solid- and liquid-based carbon capture technologies eligible for 45Q, provided they prevent CO₂ emissions and meet the same verification standards required of existing technologies. Advocates say the legislation provides a clear, long-term pathway for innovation without requiring repeated congressional approval for each new technology.
Two examples highlighted in the bill include:
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Methane pyrolysis, which splits methane (CH₄) to produce hydrogen and solid carbon. While hydrogen production is already eligible for 45Q if carbon is captured in gaseous form, the solid carbon output from methane pyrolysis—usable as carbon black, graphite, or asphalt binder—is currently excluded.
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Biomass Carbon Removal and Storage (BiCRS), which converts CO₂ captured from forestry or agricultural residues into solid or liquid carbon products. These materials, which would otherwise decompose or burn, can be permanently sequestered or used in industrial processes. Proponents note the approach could create new income streams for farmers while reducing wildfire fuel loads by giving market value to low- or no-value organic residues.
Supporters say the bill builds on previous updates to 45Q while ensuring that new carbon management technologies can be deployed efficiently and effectively. By linking innovation with wildfire mitigation, the Carbon Resource Innovation Act aims to strengthen forest resilience, protect communities, and drive economic growth.
The legislation is now awaiting committee consideration in the Senate.