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Tax Credits for Forest Residue Carbon Removal

This new law introduces tax credits for companies that remove carbon dioxide from forest residues generated during wildfire management. The aim is to encourage activities that reduce wildfire risks while also combating climate change. Citizens may indirectly benefit from improved air quality and reduced wildfire threats.
Key points
Businesses can receive a tax credit for each metric ton of carbon dioxide removed from forest residues and securely stored.
The credit amount varies based on storage method: $36 per ton for secure geological storage and $12 per ton for long-duration utilization (e.g., biochar, building materials).
The act specifies which forest residues qualify – those from wildfire hazard reduction or ecological restoration activities.
Detailed rules for measuring, reporting, and verifying removed carbon dioxide are established to ensure transparency and effectiveness of the program.
The Treasury Department, in consultation with other agencies, will develop sustainability standards for biomass sourcing and lifecycle analysis methods, with public input.
article Official text account_balance Process page
Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_S_1842
Sponsor: Sen. Whitehouse, Sheldon [D-RI]
Process start date: 2025-05-21
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
AI work logs for this document launch

OFFICIAL LEGAL TITLE

Wildfire Reduction and Carbon Removal Act of 2025

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_S_1842.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2025-05-21.

What are the main provisions?

Key points include:

  • Businesses can receive a tax credit for each metric ton of carbon dioxide removed from forest residues and securely stored.
  • The credit amount varies based on storage method: $36 per ton for secure geological storage and $12 per ton for long-duration utilization (e.g., biochar, building materials).
  • The act specifies which forest residues qualify – those from wildfire hazard reduction or ecological restoration activities.
  • Detailed rules for measuring, reporting, and verifying removed carbon dioxide are established to ensure transparency and effectiveness of the program.
  • The Treasury Department, in consultation with other agencies, will develop sustainability standards for biomass sourcing and lifecycle analysis methods, with public input.
What is the specific legal status?

The current status is Introduced.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Sen. Whitehouse, Sheldon [D-RI].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-23.

CATEGORIES

Taxes Environment