S. 1842 · Where this bill is now
In committee
Introduced in the Senate, May 21, 2025
What this bill does
In plain words · AI-written from the official summaryTax credit for forest waste carbon removal
Ever wonder what happens to all those branches and bark left over after wildfire prevention work in forests. This bill creates a tax credit that rewards companies for capturing carbon dioxide from this forest waste and storing it permanently underground or using it in long-lasting products. The credit pays $36 per ton for storage underground and $12 per ton for other long-term uses, with bonus payments if workers earn good wages and get training.
How it affects you
If you own or work at a company involved in forest management, biomass equipment, or carbon storage projects, this could create new business opportunities and tax benefits. For most other people, the main effect is indirect: the bill aims to reduce wildfire risk and remove carbon from the atmosphere, which could help with forest health and climate goals in your community.
Read the official summary (Introduced in Senate, May 21, 2025)
Wildfire Reduction and Carbon Removal Act of 2025
This bill establishes a new federal business tax credit for forest residue biomass carbon removal and storage.
Specifically, the bill allows a tax credit for qualified carbon dioxide equivalent that is (1) captured from qualified forest residue biomass using biomass equipment placed in service at a qualified forest residue biomass carbon removal and storage project on or after the date the bill is enacted, and (2) stored in secure geological storage or via long-duration utilization.
Qualified forest residue biomass is forest residue from the thinning of certain trees, limbs, and bark and produced from certain wildfire hazard reduction or ecological restoration activities. Sustainability standards apply.
The tax credit amount is (1) $36 (adjusted for inflation) per metric ton of qualified carbon dioxide equivalent stored in secure geological storage, and (2) $12 (adjusted for inflation) per metric ton of qualified carbon dioxide equivalent stored via long-duration utilization. The tax credit is increased if certain wage and apprenticeship requirements are met.
The bill limits the tax credit for existing removal and storage projects to the qualified captured carbon dioxide that generally is attributable to additional biomass equipment placed into service after the bill is enacted.
The tax credit may be transferred to an unrelated third party, and certain tax-exempt and government entities may receive the tax credit as a payment.
Finally, the bill requires the Internal Revenue Service to establish sustainability standards for the identification of qualified forest residue biomass and issue other regulations.
Written by AI (Claude) using only the official summary by the Congressional Research Service, the Library of Congress’s nonpartisan research staff. It can miss nuance, so check the official summary and the bill text for details.
1st SessionS. 1842
A BILL
Wildfire Reduction and Carbon Removal Act of 2025
Sponsor: Sen. Sheldon Whitehouse (D-RI) · Introduced May 21, 2025 · Taxation · 1 version of the text
Sources: Congress.gov actions and votes · bill text from GovInfo · latest official action May 21, 2025: “Read twice and referred to the Committee on Finance.”