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Carbon capture and storage could play a major role in a Biden Administration eager to rejoin the Paris Agreement. Our Federal Tax Group provides a brief overview of the 45Q credit and key takeaways from the IRS’s new final regulations.
Section 45Q provides a tax credit for captured carbon oxide
Final regs favor taxpayers and provide much-needed clarity
5 key takeaways
On January 6, the IRS issued much anticipated final regulations for carbon capture and storage (CCS) under Code Section 45Q. The regulations provide certainty and needed flexibility for project development, and we expect to see a ramp up in CCS projects as a result.