IRS issues final rule on carbon capture Section 45Q tax credit

January 11, 2021 |

In Washington, nearly three years after passage of the FUTURE Act reforming the Section 45Q tax credit, the Internal Revenue Service has issued a final rule to implement the credit. The following statement from the Carbon Capture Coalition may be attributed to Coalition director Brad Crabtree:

“The Carbon Capture Coalition welcomes the release of final rules to implement the reformed 45Q tax credit. The final rule will provide long overdue regulatory and financial certainty to incentivize private investment in economywide deployment of carbon capture, removal, transport, use and geologic storage across a range of key industries. The final rule, coupled with the two-year extension of 45Q passed in December as part of the 2020 omnibus spending package, will help to unlock billions of dollars in private capital to continue moving forward on the approximately 30 publicly identified commercial carbon capture projects already under development nationwide in response to the revamped tax credit.

Since enactment of the reformed and expanded 45Q tax credit as part of the Bipartisan Budget Act in February of 2018, the Coalition has spent over two years building consensus among its growing membership of 80-plus companies, unions and NGOs on the effective implementation of 45Q, including comprehensive submissions of consensus model guidance and recommendations to Treasury and the IRS in November 2018, June 2019 and August 2020.

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Category: Fuels

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