Investment Tax Credit for Carbon Capture, Utilization and Storage

As initially proposed in Budget 2021, the government introduced an investment tax credit (ITC) for capital invested in Carbon Capture, Utilization and Storage (CCUS) projects. This note contains the costing of the ITC for CCUS. It covers the announcement in Budget 2022 which introduced the refundable tax credit for CCUS as well as Budget 2023 which announced revisions to the credit.