Agency: Department of the Treasury
Description:
Tax credit for carbon oxide captured and sequestered.
Bill Section:
13104
US Code:
26 USC 45Q
New or Existing:
Existing
Potential Cost:
$3,200,000,000
Timeline:
Through 2032
Implementation Status/Rulemaking:
On November 3, 2022, the Internal Revenue Service issued Notice 2022-57 to requested comments on the Credit for Carbon Oxide Sequestration, with comments due December 3, 2022: Source
On January 4, 2024, Internal Revenue Service requested comments concerning the form for the Credit for Carbon Oxide Sequestration – Form 8933,: Source
TCS Notes:
The Joint Committee on Taxation (JCT) estimated that the IRA’s expansion of the 45Q tax credit would cost taxpayers $3.2 billion FY22-31. In total, the JCT estimates that the updated 45Q credit will cost taxpayers $4.8 billion FY23-27. Source
While entities receiving the tax credit must comply with Environmental Protection Agency (EPA) Monitoring, Reporting, and Verification Requirements (MRV), there is a past history of waste, fraud, and abuse.
Elective Payment and Transferability allowed in certain cases.