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IRS Guidance on Carbon Capture Credits—A Welcome Step, But Threshold Questions Remain Unanswered – Bloomberg Tax

Recently issued Internal Revenue Service Notice 2020-12 and Revenue Procedure 2020-12 (together, the “new guidance”) provide long-anticipated, albeit incomplete, guidance regarding the tax credit for carbon oxide sequestration (the “carbon capture credit”) under tax code Section 45Q. The new guidance generally tracks similar guidance previously issued by the IRS for wind and solar projects, with a few key differences, which are discussed below.

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