Why It Matters

ION Clean Energy faces an existential threat: while the 45Q tax credit remains the financial foundation for its carbon capture business, the threat of elimination is real. Simultaneously, federal funding for clean energy projects has been slashed, and state-level opposition to CO₂ pipelines threatens critical infrastructure. ION’s lobbying strategy reflects this precarious position: defending the 45Q credit while pursuing Department of Energy funding in an increasingly competitive landscape.

By the Numbers

ION Clean Energy Inc. spent $50,000 in the last quarter of 2025 with Holland & Knight LLP, bringing its total 2025 spending to $170,000. The newcomer to federal lobbying started advocacy efforts in Q2 2025, maintaining consistent focus on two issues: the 45Q tax credit and DOE funding.

The company deployed two lobbyists: Molly Ryan Ross, who served six years as legislative assistant to Senator Susan Collins (R-ME), and Taite R. McDonald, whose expertise spans clean energy and carbon capture policy. The consistency suggests confidence in Holland & Knight’s ability to navigate ION’s core legislative priorities amid intense congressional debate.

The Agenda

ION is lobbying on two specific issues: the 45Q Tax Credit for carbon sequestration and securing Department of Energy funding. The 45Q credit is vital for making ION’s carbon capture technology economically viable, while DOE funding efforts target federal grants for technology development and deployment. This dual focus reflects ION’s need to defend existing incentives while securing federal resources in a volatile policy environment.

Broader Context

ION navigates a fractured congressional landscape with strong bipartisan support for carbon capture technology but significant threats to its business model. The One Big Beautiful Bill Act preserved the 45Q tax credit, but Representative Scott Perry’s 45Q Repeal Act (H.R. 1946) poses an existential threat. Meanwhile, DOE terminated $7.56 billion in funding awards for 223 climate projects.

Infrastructure challenges compound legislative risks. Only 19 of 270 announced carbon projects have necessary pipeline capacity, while multiple states have restricted CO₂ pipelines’ eminent domain authority. However, EPA’s decision to grant Class VI well permit primacy to five states offers potential permitting acceleration.

Between The Lines

Congress is actively reshaping carbon capture policy, creating both opportunities and threats. While the One Big Beautiful Bill preserved the 45Q credit at $85-$180 per ton, Perry’s repeal bill seeks elimination. A February 2025 Senate Environment hearing reflected bipartisan interest despite ongoing concerns.

DOE funding has become dramatically constrained following the termination of climate awards, though federal courts found these cancellations unlawful. Senators Whitehouse and Cramer warned that regulatory uncertainty threatens billions in planned investments.

Competitive Landscape

ION operates in a crowded advocacy space where multiple organizations compete for limited federal resources. Key competitors include Cleco Power LLC, NET Power LLC, Carbon GeoCapture Corp., and Remora, all lobbying on 45Q tax credits and federal funding. Industry groups like the Compressed Gas Association also focus on CO₂ sequestration regulations.

The Bottom Line

ION’s Q4 2025 lobbying investment reflects a strategic bet that sophisticated Washington representation can defend existing tax incentives and secure scarce federal resources. While the One Big Beautiful Bill preserved the critical 45Q credit, the repeal threat and DOE funding cuts create an increasingly hostile environment. The company’s retention of experienced Holland & Knight lobbyists signals recognition that policy volatility could determine its business viability.

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