Leaning Into The Inflation Reduction Act

It's here, so we might as well take advantage of it. On Aug. 16, President Biden signed the Inflation Reduction Act into law. The IRA provides tax incentives and grants for solar, wind, hydrogen, nuclear, oil and gas, and carbon capture, utilization and sequestration projects. Considering Oklahoma's vast energy resources, infrastructure and capable workforce, there are considerable opportunities for Oklahoma to prosper from the IRA.

The IRA amends section 45Q of the tax code to provide credits for the construction of carbon capture and utilization facilities. Any facility that begins construction prior to Jan. 1, 2033, will qualify for the 45Q credit. It increases the credit for carbon capture by industrial facilities and power plants to $85 per metric ton for carbon dioxide stored in deep geologic formations, $60 per ton for the beneficial utilization of captured carbon emissions, and $60 per ton for CO2 stored in oil and gas fields. Furthermore, for qualified