The United States Energy Association (USEA), in cooperation with the U.S. Department of Energy Office of Fossil Energy (DOE), seeks proposals for a contractor to complete a Review of Federal, State, and Regional Tax Strategies/Opportunities for CO2-EOR-Storage and the CCUS Value Chain for the following states: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Idaho, Illinois, Kansas, Kentucky, Louisiana, Michigan, Mississippi, Montana, Nebraska, Nevada, New Mexico, North Dakota, Montana, Ohio, Oklahoma, Pennsylvania, West Virginia, Wyoming, Tennessee, Texas, and Utah.
The contractor will perform Tasks 1-10 below for each state:
1). Review analogous Federal Tax Credit incentives that could potentially be applied to the use of 45Q, such as the Production Tax Credit and Investment Tax Credit used in deploying renewables.
2). Review individual State Tax incentives to support projects, infrastructure, economic development and fossil fuel production. Determine compatibility with the Federal 45Q Tax Credit.
3) Provide examples of deal structures that use tax credits, such as 45Q, to support funding and project development.
4) Profile the financial and investment sectors mostly likely to utilize the 45Q Tax credit. If possible, obtain personal insights from key players.
5) Identify other Federally supported programs that could be used in conjunction with the 45Q Tax Credit and their impact on decision making regarding location, asset ownership structures, likely counterparties and deal structures to optimize the use of the 45Q Tax Credit. Identify any potential applications, directly or indirectly, related to Tribal fossil fuel projects. For example, the recently created Opportunity Zones offer unique funding pathways. Can 45Q add to this incentive, and how may it do so?
6) Identify roadblocks or hurdles that require greater understanding with regard to the use of 45Q and provide suggested solutions.
7). Identify and describe how 45Q can support Corporate Social Responsibility (CSR) and Environmental, Societal Governance (ESG) programs and initiatives.
8). Provide visual representations of the various deal structures around the 45Q Tax Credit, i.e., its role in debt/equity structures; how a funder will deal with the timeframe of project inception to qualify for the tax credit by 2024; and, how to view per the “capital recovery factor”, etc.
9). Define the benefits accruing to, and responsibilities of, various project stakeholders as they relate to obtaining the 45Q tax incentive from the U.S. Treasury.
10). Identify the relevant Federal and State agencies that offer and are tied to the various incentive programs.
The contractor will designate a primary contact to coordinate and provide monthly updates on the status via written high-level reports and conference calls between the contractor and USEA to commence within the 15 days after the initial award is formally accepted and contracted.