IRS Publishes Notice Setting Inflation Factor for Carbon Oxide Sequestration Credit

The IRS has published a notice setting the inflation adjustment factor of 1.4639 for the carbon oxide sequestration credit under I.R.C. §45Q for calendar year 2026. This results in credit amounts of $29.28 per metric ton under I.R.C. §45Q(a)(1) and $14.64 per metric ton under I.R.C. §45Q(a)(2). The adjustment applies only to taxpayers who elect under I.R.C. §45Q(b)(3) to use the dollar amounts from I.R.C. §45Q(a)(1) or (2) instead of the amounts under I.R.C. §45Q(a)(3) or (4). [IRS, Notice 2026-29, 05/22/26]

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