On October 30, the Carbon Capture Coalition provided comments to the Department of the Treasury (Treasury) and the Internal Revenue Service (IRS) in response to the IRS’s Request for Information regarding the recently issued Notice 2026-50.
Notice 2026-50 modifies and expands the Safe Harbor provided to taxpayers in December of 2025, establishing an interim path forward for the continued election of the Section 45Q tax credit in calendar years 2025 and beyond, in light of the probable absence of the Environmental Protection Agency’s (EPA) Greenhouse Gas Reporting Program (GHGRP). This separate regulatory program, administered by the EPA, underpins the election of the tax credit by requiring reporting of amounts of carbon dioxide (CO2) injected underground for secure geological storage.
Following EPA’s announcement of intent to repeal the GHGRP, the Coalition began engaging with Treasury to request that the agency create regulatory certainty for taxpayers claiming the multi-year 45Q tax credit in the program’s absence. Notice 2026-50 addresses most of the concerns the Coalition has previously raised with Treasury and the IRS in our February 11, 2026, letter, November 3, 2025, letter, and model guidance.
Notice 2026-50 requested comments on the appropriate standard to be used in place of Subpart RR of the GHGRP to demonstrate compliance with Section 45Q. The Coalition’s comments included three key recommendations to craft an efficient solution to the GHGRP’s absence that provides taxpayers with regulatory continuity and certainty:
- Providing a long-term regulatory alternative to the GHGRP.
- Should the EPA repeal the GHGRP, Treasury and the IRS should make the Safe Harbor created under Notice 2026-50 permanent, thereby continuing use of the Subpart RR methodology as it was in effect on December 31, 2025.
- The Coalition believes Subpart RR is the only fit-for-purpose methodology for quantifying secure geological storage in the US regulatory context. Adopting the Subpart RR methodology, with certification by a qualified independent engineer or geologist, is a sustainable, long-term solution for claiming the 45Q tax credit.
- Treasury should not adopt ISO 27914:2026 in whole or in part, as the sole or as an alternative method of certification for qualified carbon for purposes of Section 45Q, as it is overly broad and duplicates many aspects of the US regulatory regime for carbon management project deployment.
- Allow qualified independent engineers or geologists to review and approve revised and new MRV plans, instead of submitting them to EPA for approval, as currently required under the GHGRP.
Should Treasury and the IRS adopt the existing Subpart RR methodology for geological CO2 storage through regulations or guidance, combined with certification by a qualified independent engineer or geologist, the agency will provide a sustainable, long-term solution for taxpayers claiming the 45Q tax credit. In turn, the Treasury and the IRS would sidestep the regulatory risks and compliance costs associated with adopting a different, duplicative standard, such as ISO 27914:2026. Lastly, Treasury and the IRS must establish a clear procedure for approving new MRV plans or modifying existing ones.
Taken together, implementing these recommendations would both preempt concerns among new 45Q claimants and ensure regulatory consistency for existing taxpayers. The Coalition looks forward to continued engagement with Treasury and the IRS and stands ready to serve as a partner in ensuring regulatory certainty for taxpayers.
Finally, while this guidance provides critical regulatory certainty for taxpayers claiming the 45Q tax credit, the Coalition and our allied effort, Carbon Capture Impact are eager to restore the public transparency and accountability measures for 45Q that have long been afforded under the GHGRP. We remain committed to identifying a path forward to ensure continued public and policymaker confidence in the tax credit.
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The Carbon Capture Coalition is a nonpartisan collaboration of companies, unions, conservation and environmental policy organizations, building federal policy support to enable economywide, commercial-scale deployment of carbon management technologies. Carbon capture, removal, transport, reuse, and storage technologies—commonly referred to as carbon management—are a portfolio of safe, available, and increasingly cost-effective emissions-reduction technologies used to manage, abate, and remove carbon emissions from industrial facilities, power plants, and directly from the air. Carbon management technologies are necessary tools to cut emissions across sectors, strengthen the nation’s energy and industrial leadership position in the world, and create family-sustaining jobs for workers.