IRS Notice: Safe Harbor for Carbon Oxide Sequestration Credit (IRC §45Q)

The IRS published a notice providing a safe harbor for determining eligibility for the I.R.C. §45Q credit for qualified carbon oxide that is captured and disposed of in secure geological storage, and carbon oxide described in Treas. Reg. §1.45Q-2(h)(5), and not used as a tertiary injectant in a qualified enhanced oil or natural gas recovery project during calendar year 2025. The safe harbor is provided in the event the EPA does not launch the electronic Greenhouse Gas Reporting Tool for filers to prepare and submit information required under subpart RR for reporting year 2025 by June 10, 2026. [Notice 2026-1 ...