Wildfire Reduction and Carbon Removal Act of 2025

This bill creates a tax credit for businesses that capture and store carbon from forest residues used in wildfire hazard reduction activities. The credit provides $36 per metric ton for carbon stored in secure geological storage and $12 per metric ton for carbon stored through long-duration utilization. To qualify, businesses must meet sustainability standards for sourcing forest residues (from thinning trees no greater than 8 inches in diameter) and undergo verification through lifecycle analysis and monitoring. The credit is designed to incentivize carbon removal while promoting sustainable forest management practices. It will apply to taxable years beginning after December 31, 2025.