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Louisiana parish officials disputed current tax assessments for the carbon capture and storage industry during a hearing this week, The Center Square reports.
The Louisiana Tax Commission met with industry leaders and Allen Parish Police Jury representative Jacob Dillehay on Wednesday to discuss the proper way to tax carbon pipelines, injection wells and storage.
Carbon capture and storage is a process used by large power generation or industrial facilities of fossil fuels to combat climate change. If not being used on-site, the CO2 is captured, compressed and transported to be used or injected into deep geological formations such as depleted oil and gas reservoirs or salt domes.
Dillehay says leading carbon capture industries are attempting to receive a discount on the taxes regarding pipelines and injection wells by asking for a higher depreciation rate of the material. This is unfair to the cities that host these pipelines because the shelf life of carbon pipes are the same as regular oil and gas channels, according to Dillehay.
