IRS Releases Final Rule on 45Q Tax Credit

Source: rlmartin

On January 6, 2021, the U.S. Treasury Department and Internal Revenue Services (IRS) issued the final regulations regarding the 45Q tax credit, which was signed into law as part of the Bipartisan Budget Act of 2018 on February 8, 2018. The final regulations provide procedures to determine adequate security measures for the geological storage of qualified carbon oxide, exceptions to the general rule for determining to whom the credit is attributable, procedures for a taxpayer to make an election to allow third-party taxpayers to claim the credit, the definition of carbon capture equipment, and standards for measuring utilization of qualified carbon oxide. To learn more, visit the IRS website.