Updated subsidy estimates for 45Q, Master Limited Partnerships and the Strategic Petroleum Reserve
This memo provides updated subsidy estimates and background information on three subsidies benefiting the oil and gas industry. These include 45Q tax credits for carbon capture, utilization and storage (CCUS); tax exemptions for Master Limited Partnerships (MLPs), used heavily by the oil and gas sector; and the federal Strategic Petroleum Reserve. The memo also highlights an emerging risk area: the use of tax-exempt corporate structures for carbon sequestration activities.