The Internal Revenue Service

Request for Comments on Carbon Capture Credit

In February 2018, the IRS issued Notice 2019-32 requesting comments from taxpayers regarding the changes to the carbon capture credit in the new Bipartisan Budget Agreement.

Guidance for Businesses on Carbon Capture Credit

In March 2020, The IRS issued Notice 2020-12, which provides guidance to help businesses determine when construction has begun on a qualified facility or on carbon capture equipment that may be eligible for the carbon capture credit. 

Safe Harbor for Carbon Capture Partnerships

In March 2020, the IRS issued Revenue Procedure 2020-12, which creates a safe harbor for the allocation rules for carbon capture partnerships, simplifying the application of carbon capture credit rules to partnerships able to claim the credit.