The infrastructure bill that made it to the President’s desk earlier in the week contained a provision allowing for a new type of tax exempt private activity bond (Section 142(a)) for carbon dioxide capture facilities.

The bill allows for financing facilities and eligible components of facilities that are used for the purpose of capture, treatment and purification, compression, transportation, or on-site storage of carbon dioxide.

The general rule requires such a facility or component to have at least a 65% capture and storage percentage, but permits for an alternative calculation:

`(C) Capture and storage percentage.--

                ``(i) In general.--Subject to clause (ii), the capture 

            and storage percentage shall be an amount, expressed as a 

            percentage, equal to the quotient of--

                    ``(I) the total metric tons of carbon dioxide 

                designed to be annually captured, transported, and 

                injected into--

                        ``(aa) a facility for geologic storage, or

                        ``(bb) an enhanced oil or gas recovery well 

                    followed by geologic storage, divided by

                    ``(II) the total metric tons of carbon dioxide 

                which would otherwise be released into the atmosphere 

                each year as industrial emission of greenhouse gas if 

                the eligible components were not installed in the 

                industrial carbon dioxide facility.

This should provide a boost to carbon sequestration development.