Carbon Capture Coalition Statement on Procedural Guidance from IRS to Claim a Credit for Utilization of Carbon Oxide

The following statement on the Internal Revenue Service (IRS) guidance for the procedures to claim a credit for utilization of carbon oxide may be attributed to Jessie Stolark, Executive Director of the Carbon Capture Coalition: 

“On Wednesday, July 24, 2024, the IRS issued procedural guidance on claiming the federal Section 45Q tax credit for utilization projects. Specifically, the guidance outlines details to be included in the Lifecycle Analysis (LCA) report submission that is required before claiming the credit for utilization projects. Additionally, the guidance clarifies the timeframe for claimants to use an approved LCA to claim the credit. While we are still awaiting additional guidance from the IRS on the historic enhancements made to 45Q under the Inflation Reduction Act of 2022, the guidance released this week formalizes and complements procedures already in place from the final guidance issued by the IRS in 2021 following the creation of the utilization pathway in 2018.”  

“The Coalition appreciates the procedural details that clarify the process involved in submitting and reviewing the LCA application. The guidance answers several questions related to the timeline of the LCA review procedure performed by both the IRS and the Department of Energy (DOE), the timeline for the requirement of reapproval of an approved LCA, and the procedures for the periodic resubmission of the LCA application.”  

“While this guidance does not make any significant changes to the process and timeline of the LCA submission, review, and approval, it does provide more clarity and transparency of the application process. Looking ahead, we remain eager to see the prompt issuance of additional guidance related to the historic enhancements made to 45Q under the Inflation Reduction Act.” 

### 

Convened by the Great Plains Institute, the Carbon Capture Coalition is a nonpartisan collaboration of more than 100 companies, unions, and conservation, and environmental policy organizations, building federal policy support to enable economywide, commercial-scale deployment of carbon management technologies. This includes carbon capture, removal, transport, utilization, and storage from industrial facilities, power plants, and ambient air.