Wildfire Reduction and Carbon Removal Act of 2025

This bill creates a new tax credit for businesses that capture carbon dioxide by using leftover forest materials — like branches, bark, and trimmings from trees — and store that carbon underground or through long-term use. The forest materials must come from activities like thinning forests to reduce wildfire risk or restoring natural ecosystems. The credit is worth $36 per metric ton of carbon stored underground or $12 per metric ton stored through long-term use, with higher amounts available if businesses meet certain worker pay and training requirements. The credit can be transferred to other parties, and the IRS is required to set rules for making sure the forest materials used qualify under sustainability standards.

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