Carbon Resource Innovation Act

The Carbon Resource Innovation Act (S 3778) expands a federal tax credit to include businesses capturing carbon in solid or liquid form, directly affecting companies building carbon capture facilities. It modifies the existing 45Q tax credit to cover facilities that capture carbon that would otherwise be released into the atmosphere, requiring measurement at the capture source and verification at disposal. The bill sets a minimum annual capture threshold of 1,000 metric tons for these facilities and defines "solid or liquid carbon capture facility" to include systems with net carbon reductions compared to standard processes. This change aims to incentivize broader carbon capture technology adoption beyond current direct air capture methods.