The Internal Revenue Service issued a notice Wednesday with initial guidance on claiming a tax credit involving carbon oxide sequestration.
The Carbon Oxide Sequestration Credit was expanded under the Inflation Reduction Act of 2022. Notice 2024-60 spells out information that should be included in a written report known as the lifecycle analysis report, along with the procedures a taxpayer should follow to submit the report along with the necessary supporting information to the IRS and the Energy Department for review.
Before determining any credit, the IRS first needs to approve the lifecycle analysis of greenhouse gas emissions documented in the LCA report pertaining to carbon capture property placed in service on or after Feb. 18, 2018. Therefore, the IRS must approve the LCA before a taxpayer can claim the utilization of carbon oxide credit.
Form 8933 is used to claim the Carbon Oxide Sequestration Credit, also known as the 45Q tax credit after the section of the Tax Code. It provides tax credits of up to $85 per ton of carbon oxide captured and permanently stored in geological formations. Carbon capture and sequestration are a two-step process,
Water vapor rises from the NRG Energy Inc. WA Parish generating station in Thompsons, Texas, U.S., on Thursday, Feb. 16, 2017. The plant is home to the Petra Nova Carbon Capture Project, a joint venture between NRG Energy and JX Nippon Oil & Gas Exploration Corp., which reportedly captures and repurposes more than 90% of its own Co2 emissions.
The American Institute of CPAs has published a new guide with information on best practices for the accounting and valuation of business combinations such as mergers and acquisitions.
A group of Republican lawmakers sent a letter to the incoming Trump administration asking it to end the IRS Direct File service via a day one executive order.
