Exxon, Carbon Capture Investors Seek IRS Help to Spur Market

Major players in the carbon capture industry are asking the IRS to tweak rules for a tax credit meant to jump-start the field, where growth has slowed amid regulatory uncertainty and permitting delays.

Exxon Mobil Corp. and Honeywell International Inc. are among companies that signed a letter to Department of Treasury seeking clarification of how carbon is measured in the rules for the 45Q carbon oxide sequestration tax credit, expanded through the 2022 tax-and-climate law.

Driven by oil and gas companies, the carbon capture industry had double-digit growth in 2023 but stalled in the first six months of 2024. The ...