IRS Plans Guidance on Documentation for Carbon-Capture Credits

The IRS is planning to issue more guidance on tax credits for carbon capture, which will focus on how taxpayers must document that they are reducing greenhouse gases, an IRS attorney said Friday.

The guidance under tax code Section 45Q will focus on the process for conducting and submitting life cycle assessments, said Maggie Stehn, an attorney at the IRS’s Passthroughs and Special Industries unit, speaking at a meeting held by the American Bar Association’s tax section.

• Life cycle assessments are analyses of greenhouse gas emissions in which taxpayers must demonstrate that a proposed process results in a net ...