Tag Archives: Section 45Q Tax Credit

Bipartisan Bill Seeks Further Tax Incentives for Carbon Capture and Utilization Projects

By Tom Donaho on March 9, 2023 Posted in Alert

On Feb. 28, the Captured Carbon Utilization Parity Act (CCU Parity Act) was introduced by Sen. Sheldon Whitehouse, D-R.I., and Sen. Bill Cassidy, R-La. The CCU Parity Act would increase the tax credit available for carbon capture and utilization to match the tax credit available for carbon capture and sequestration for both the direct air … Continue Reading

New CCUS Regulatory Handbook a Practical Guide for Stakeholders, Practitioners and Policymakers

By Tom Donaho on March 6, 2023 Posted in Alert

Carbon capture, utilization and storage (CCUS) is primed to play a crucial role in setting the global energy system on a path to net zero. As a result, the United States has endeavored to incentivize investment in large-scale CCUS projects through substantial financial incentives such as the Section 45Q tax credit. More recently, the Biden … 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

President Biden’s Plan for the Carbon Sequestration Tax Credit

By John R. Lehrer II on August 25, 2021 Posted in Carbon Emissions

Investment in Section 45Q tax partnerships may soon increase rapidly as the Biden administration aims to increase the Section 45Q tax incentive for carbon capture, utilization and sequestration.[1] Specifically, President Biden’s American Jobs Plan includes proposals to extend the Section 45Q tax credit to make it “easier to use for hard-to-decarbonize industrial applications, direct air capture, … 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