Bloomberg Tax
May 29, 2020, 8:30 PMUpdated: May 29, 2020, 9:18 PM

Carbon Capture Tax Rules Raise Transparency, Clawback Issues (1)

Lydia O'Neal
Lydia O'Neal
Reporter

Lawmakers and the energy lobby cheered the release of long-awaited Treasury Department proposed rules for an expanded tax credit for companies that capture and store carbon dioxide.

The proposals (REG-112339-19), released Thursday, nevertheless may prompt pushback from both energy industry and environmental interests over language laying out the period over which the IRS can claw back the credit because of carbon leakage, as well as from transparency advocates worried about improper credit claims.

While an industry-friendly development overall, “it’s kind of a mixed bag,” said Hunter Johnston, a partner at Steptoe & Johnson LLP, ...

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