Country:United States
Year:2008
Policy status:In Force
Jurisdiction:National
Date Effective:2008
Policy Type:Economic Instruments>Fiscal/financial incentives>Tax relief
Policy Target:Carbon Capture Storage
Agency:Internal Revenue Service (IRS)
URL:http://www.irs.gov/irb/2009-44_IRB/ar11.html
Legal References:American Recovery and Reinvestment Act of 2009, Div. B, Title I, Sec. 1131
Funding:Estimated to cost USD 1.119 billion over 10 years
Description:

The 45Q Carbon Dioxide Sequestration Credit was created by the Emergency Economic Stabilization Act of 2008 to provide a tax credit for each metric ton of qualified CO2 that is captured and disposed of in secure geological storage or used as a “tertiary injectant” in a qualified enhanced oil or natural gas recovery project.

Generally, the credit is $20 (adjusted for inflation) per metric ton for qualified carbon dioxide captured at a qualified facility, disposed of in secure geological storage, and not used as a tertiary injectant in a qualified enhanced oil or natural gas recovery project. The credit is $10 (adjusted for inflation) per metric ton for qualified carbon dioxide captured at a qualified facility, used as a tertiary injectant in a qualified enhanced oil or natural gas recovery project, and disposed of in secure geological storage. Facilities are required to capture at least 500,000 metric tons of CO2 per year to qualify. 

Last modified: Fri, 17 Feb 2017 15:37:57 CET