Bill · S. 1842· Senate(119-S-1842)
Wildfire Reduction and Carbon Removal Act of 2025
- Introduced
- 5/21/2025
- Last activity
- 5/21/2025 — Read twice and referred to the Committee on Finance.
- Sponsored by
- Sheldon Whitehouse
- Cosponsors
- - 1 - 0
- Introduced
- In Committee
What this bill would do
The Wildfire Reduction and Carbon Removal Act of 2025 seeks to amend the Internal Revenue Code of 1986. It aims to create a new tax credit for capturing and storing carbon from forest residue biomass. This biomass must come from specific activities like wildfire hazard reduction or ecological restoration. The bill establishes different credit amounts based on whether the carbon is kept in secure geological storage or through long-duration utilization. It also sets requirements for sustainability standards and monitoring to ensure the carbon is handled correctly.
Yes· 3 of 11
Does this cut the pollution that drives climate change?+7
The bill directly incentivizes the capture and storage of carbon to reduce atmospheric emissions.
Does this better protect air, water and wildlife?+5
It promotes wildfire hazard reduction and ecological restoration through sustainability standards.
Does this better protect public land such as parks and forests?+5
The bill focuses on residue removal through US Forest Service and BLM land management plans.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
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Financial Incentives for Carbon Removal: Taxpayers can receive a credit of $36 per metric ton for carbon stored in secure geological storage or $12 per metric ton for long-duration utilization (Section 2(a)(b)(1)).
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Inflation Protection: The credit amounts are subject to an adjustment for inflation for tax years beginning after 2026 (Section 2(a)(b)(2)).
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Increased Support for Specific Facilities: Certain facilities that meet specific requirements can receive an increased credit amount, which is five times the standard amount (Section 2(a)(b)(3)(A)).
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Support for Forest Management: The bill targets forest residues from tree thinning (no greater than 8 inches in diameter) and other residues produced during wildfire hazard reduction or ecological restoration (Section 2(a)(e)(2)).
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Flexibility for Existing Projects: Projects already in service can receive credits for additional biomass equipment placed in service after the Act is enacted (Section 2(a)(c)).
Potential Negative Impacts for People
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Restrictions on Certain Uses: No credit is allowed for carbon dioxide equivalent used as a tertiary injectant in enhanced oil or natural gas recovery projects (Section 2(f)(4)).
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Credit Limitations for Energy Production: If a project produces electricity, hydrogen, or fuel, certain existing energy credits may not be allowed (Section 2(f)(5)(B)).
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Potential Economic Displacements: Sustainability standards are required to identify practices that have minimal impacts on reducing or displacing existing economic uses of forest products (Section 2(f)(1)(B)(v)).
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Risk of Benefit Recapture: The Secretary is required to provide for recapturing the credit if the stored carbon ceases to be handled in a manner consistent with the requirements (Section 2(f)(7)(B)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Environment Energy And Infrastructure
- Reduces Carbon Emissions+7Improves Environmental Protections+5Improves Public Land Management+5Improves Disaster Relief And F E M A+4Increases Renewable Energy Investment+4Improves Rural Development+3
- Demographic And Interest Groups
- Good For Business Owners+5Good For Rural Residents+3
- Economy And Finance
- Increases Job Creation+3Improves Economic Growth+2
- Governance And Ideology
- Increases Federal Power+2
- 5/21/2025
- Read twice and referred to the Committee on Finance.
- 1 Cosponsor added.
- Introduced in Senate
Adam SchiffDemocrat · California