Carbon Capture Coalition

Carbon Capture Coalition Statement on the Extension of the Safe Harbor for 45Q

On August 14, the US Department of the Treasury (Treasury) and the Internal Revenue Service (IRS) announced they have modified and extended the available safe harbor for taxpayers who capture and store carbon in dedicated saline geologic formations until such time as Treasury provides further guidance or proposed regulations. The notice issued today provides a path forward for the continued election of the Section 45Q tax credit in calendar years 2025 and beyond, allows taxpayers to continue relying on Subpart RR to substantiate volumes of CO2 stored for the purposes of enhanced oil recovery (EOR), and addresses necessary recapture provisions.