Louisiana ’s industrial heavyweights could be in line for more than $3.5 billion annually in federal tax credits if their announced carbon capture and storage (CCS) projects are built, according to new data compiled by the Environmental Integrity Project (EIP).
The windfall stems from the 45Q federal tax credit, which pays companies $85 per metric ton of CO2 permanently stored in geological formations or used in low-carbon products.
The incentive, expanded under the 2022 Inflation Reduction Act and reaffirmed this summer in the “One Big Beautiful Bill Act,” has become a cornerstone of US carbon management policy.
A Growing Pipeline of Projects
EIP identified 17 industrial CCS projects in Louisiana’s chemical, refining, and liquefied natural gas sectors that would qualify for the credit. Collectively, these projects estimate capturing 42 million metric tons of CO2 per year.
In total, Louisiana hosts 43 CCS projects and 10 CO2 pipelines in development, including 22 regional hub concepts designed to aggregate emissions from multiple industrial sites for shared transportation and storage infrastructure.
Some of the largest proposed facilities carry billion-dollar tax credit potential:
Relevant: ExxonMobil To Transport & Store CO2 From The AtmosClear BECCS Project In Louisiana
Other projects, including Donaldsonville Nitrogen Complex, Cameron LNG, and CF Industries/Mitsui Gulf Coast Blue Ammonia, could qualify for $85–170 million each year. Additional ventures such as Commonwealth LNG, Big Lake Fuels, and Methanex Geismar Methanol have not yet disclosed capture volumes, suggesting the total credit potential may rise further.
The Gulf Coast is emerging as a hub for large-scale carbon capture, supported by unique geology, concentrated industrial emissions, and expanding CO2 pipeline networks.
For Louisiana, the combination of tax credits, abundant storage reservoirs, and industrial demand could accelerate the state’s transition into a leading carbon management economy.
