Governor of Indiana Signs New Carbon Capture Bill

By Tom Donaho on October 5, 2022 Posted in Alert, CCUS

Indiana is the most recent state to build out a regulatory structure in anticipation of significant carbon capture, utilization and sequestration (CCUS) project deployment. Last week, Governor Eric Holcomb signed into law H.R. 1209, which addressed common issues to carbon sequestration regulation, including pore space ownership, liability, permitting, monitoring and mineral rights primacy. Many provisions … Continue Reading

Easing the Path Toward Carbon Sequestration: Revenue Ruling 2021-13

By John R. Lehrer II on August 26, 2021 Posted in Carbon Emissions

On July 1, 2021, the IRS released Revenue Ruling 2021-13 (Rev. Rul. 2021-13). That ruling (i) provided an example of the functionality-based definition of carbon capture equipment found in final Section 45Q Treasury Regulations; (ii) held that an investor must own at least one component (and is not necessarily required to own all components) of … Continue Reading

Monetizing the Section 45Q Tax Credit: The Key to Carbon Sequestration

By John R. Lehrer II on August 23, 2021 Posted in Carbon Emissions

If there is to be rapid progress in limiting the increase of carbon dioxide (CO2) in the atmosphere, it will depend substantially on federal tax credits and state incentives for carbon capture and storage. For now, carbon capture and storage strategies are largely of three kinds: (1) biological removal (using photosynthesis to fix atmospheric CO2 … Continue Reading