Debate Over Carbon Capture Tax Credits, as PBO Estimates They Could Cost $1 Billion More Than Estimated

A new report by the Parliamentary Budget Officer (PBO) says a tax credit to encourage companies to invest in carbon capture technology will likely cost more than the federal government has estimated. The Feb. 1 report by the PBO estimates the cost of the investment tax credit for carbon capture, utilization, and storage (CCUS) at $5.7 billion for the six years from 2022 to 2028. A second PBO report on a tax credit for investments in clean hydrogen found the tax could reduce federal revenues by $5.7 billion over five years. Lumped together, the two credits could cost more than $11 billion—roughly a billion more than Ottawa has estimated....