Seeking to clarify the incentives available to developers of projects that capture carbon emissions during emission, the U.S. Treasury Department and the Internal Revenue Service (IRS) released final regulations for Section 45Q of the Internal Revenue Code in early January.[1]
Section 45Q incentivizes tax equity investors to invest in carbon capture and sequestration (“CCS”) by making financing easier through liberalization of several concepts and provisions.[2] Notwithstanding Section 45Q, though, various costs, inconsistent public support, and transportation and storage challenges remain barriers to implementing CCS.[3]
