CCUS Investment Tax Credit Eligible Equipment

Raw CO₂ Pre-Treatment

Raw CO₂ Pre-Treatment equipment removes impurities and other particles from industrial flue gas before entering the capture equipment and would be eligible for the point-source capture ITC rate, a maximum of 50%.

CO₂ Purification and Compression

CCUS projects compress and purify CO₂ to reduce its volume and prepare it for transportation and storage. Depending on the location of the equipment and the source of CO₂, purification and compression equipment may receive a 60% ITC rate if supporting a direct air capture project, 50% if supporting point source capture project, or 37.5% if part of a transportation, storage, utilization project.

Power and/or Heat and Water Systems

See (link to part 1 dual-use equipment section) for the value of dual-use power and/or heat and water systems that support both industrial and CCUS processes.

Power, Heat, and Water Systems that solely support a CCUS process would be eligible for an ITC rate of up to 50% for point source capture and 60% for direct air capture.

CO₂ Transportation

CO₂ for CCUS is typically transported via pipeline, though some projects use trucks, rail or ships. Trenching for pipelines is an eligible CO₂ transportation activity under the ITC, however related work such as land clearing or road construction are not. Pipelines and vessels that contain CO₂ as part of CCUS projects are eligible for the CCUS ITC. CO₂ transportation equipment is eligible for an ITC rate of up to 37.5%.

CO₂ Storage

CO2 storage equipment used to prepare, inject and monitor CO2 in subsurface dedicated geological storage is eligible for an ITC rate of up to 37.5%.

CO₂ Utilization

Permanently storing CO₂ in concrete is the only recognized utilization as of July 2025. Relevant equipment to the process is eligible for an ITC rate of up to 37.5%.

Absorbent/Solvent-based Carbon Capture

Absorbent or Solvent-based capture processes typically have two steps: absorption, where solvents bind with CO_2, and regeneration which produces a pure CO₂ stream when heat is applied to the solvent.

Equipment:

• Absorber column (packed, plated, or tray-style columns)
• Regeneration column (packed, plated or tray columns)
• Fluid reflux drum
• Lean adsorbent recovery and collection

Solid Adsorption Carbon Capture

Solid materials, adsorbents, can be used to capture CO₂. Physical adsorption, or the binding of CO₂ to the solid material, occurs when the CO₂ contacts the adsorbent. Pressure or temperature swing systems can be used to both move the flue gas or atmospheric gas in contact with the absorbent and to pull the CO₂ off the adsorbent (this is called desorption).

Equipment:

• Pressure/vacuum adsorption and desorption equipment
• Temperature swing adsorption and desorption equipment
• Solid material handling system (rotary conveyors, cyclones, particle filters)

Membrane Separation Carbon Capture

Membrane capture uses semi-permeable membranes to separate CO₂ from industrial flue gas. The membrane used is engineered to be selective, attracting and separating only CO₂ from the mixed gas stream. This separation process is driven by a pressure difference, or concentration rise across the membrane.

Equipment:

• Compressors (for flue gas and captured CO₂)
• Membrane modules

Cryogenic Carbon Capture

Cryogenic capture is based on CO₂ becoming a liquid at different temperatures than other gases like nitrogen, oxygen, and water vapour. CO₂ is separated from other gasses by cooling the gas that enters the capture system to very low temperatures.

Equipment:

• Refrigeration systems
• Cryogenic distillation columns
• Cryogenic/near-cryogenic pumps
• CO₂ compressors, cryogenic storage

Calcium Looping Carbon Capture

Calcium looping is a capture method that utilizes the reversible chemical reaction between calcium oxide and CO₂ in flue gas. This process operates in two main stages: carbonation and calcination. Carbonation is a chemical reaction between calcium oxide and CO₂ to form calcium carbonate, separating CO₂ from the flue gas. Calcination, is the reverse reaction that occurs when heat is applied to calcium carbonate, producing a pure CO₂ stream and calcium oxide.

Equipment:

• Carbonation vessel (fluidized bed reactor)
• Calciner vessel (fluidized bed reactor, rotating kiln reactor)
• Solid handling (rotary conveyors)
• Solid separation (cyclones, filters)