Over 100 Organizations to Congress: Defund the Carbon Capture Tax Credit Scam
Letter sent ahead of House Budget Reconciliation vote which would allow corporations to buy fast-tracked permits
Published May 20, 2025
Letter sent ahead of House Budget Reconciliation vote which would allow corporations to buy fast-tracked permits
Washington — Today, more than 100 organizations representing landowners, tribes, environmental advocates, fiscal watchdogs, and community leaders from across the political spectrum sent a letter urging Members of Congress to vote against the budget bill that leaves in place the carbon capture tax credit scam and fast tracks dangerous pipeline projects in communities across the country. If passed, the bill allows big corporations to pay $10 million for a fast-tracked permitting scheme that will shortchange communities and effectively guarantee approval after one year unless regulators act to stop it.
“All together, this legislation threatens to turbocharge the dangerous industry-backed climate scam of carbon capture and storage, presenting a major hazard to communities, tribes, farmers, landowners and the public purse,” write the groups. “It would accelerate the permitting of dangerous pipelines right when oversight capacity is limited and safety standards are admittedly inadequate. With the challenges facing our country, the last thing we should be doing is funneling more public money to billionaires promoting a dangerous and unnecessary industry.”
“It’s outrageous that Congress is debating how to cut food and healthcare for millions of families while letting huge corporations with a record of fraud keep raking in billions in pointless carbon capture tax credits. This Republican budget plan gives fossil fuel polluters a green light to fast-track dangerous pipelines, while doing nothing to actually help our fragile climate. Lawmakers need to stop the giveaways and start standing up for the people they were elected to represent,” said Jim Walsh, Policy Director at Food & Water Watch.
“DRC opposes any policies that will push more CO2 pipelines through our communities, and as it stands right now, that is exactly what the Big Beautiful Bill does. I urge Congress to remove language from the bill that would expedite federal CO2 pipeline permits, as well as tax credits and tax shelters the bill creates for the carbon capture industry,” said Zach Cassidy, of Dakota Resource Council.
“This bill is nothing short of a corporate giveaway masquerading as climate action. By preserving and expanding the 45Q tax credit—despite documented fraud—and fast-tracking pipeline permits, Congress is sidelining communities, especially those on the frontlines of pollution, in favor of polluters. This isn’t climate leadership—it’s deregulation dressed up as progress. Let’s be clear: padding fossil fuel profits with public money while silencing public input is a betrayal to the people and the planet,” said KD Chavez, Executive Director, Climate Justice Alliance.
“For our landowners and communities directly impacted by CCS infrastructure in South Dakota, issues of landowner rights and safety concerns are at top of mind. For those of us concerned about fiscal responsibility and avoiding false climate solutions – the 45Q tax credits are one of the clearest examples of waste, fraud, and potential for abuse out there,” Said Chase Jensen, Senior Organizer with Dakota Rural Action. “Carbon Capture and Sequestration is a failed industry, with no major projects coming in on budget or performing even close to their projection. Almost ninety percent of all 45Q tax credits claimed through the 2010’s did not meet the EPA reporting requirements. What more does congress need to know if they are looking to root out waste in federal spending? Look no further than these massive corporate handouts.”
For all the talk of waste, fraud, and abuse coming from the White House and Capitol Hill, this bill doesn’t touch the 45Q tax credit, despite extensive evidence that large corporations have abused it. The Treasury Department Inspector General investigation found widespread improper claims tied to the 45Q program, reinforcing concerns that corporations are exploiting the subsidy while delivering little to no climate benefit.
The House Rules Committee is expected to take up the bill Wednesday at 1 AM where the committee could allow votes on amendments to remove the carbon capture giveaways. Speaker Johnson is pushing to pass this controversial legislation up for a vote before Memorial Day weekend.
To see the full text of the letter including signatories, click here.
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Press Contact: Grace DeLallo [email protected]
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