{"id":228,"date":"2020-02-24T14:54:14","date_gmt":"2020-02-24T14:54:14","guid":{"rendered":"https:\/\/www.esgtoday.com\/?p=228"},"modified":"2020-05-06T10:30:33","modified_gmt":"2020-05-06T10:30:33","slug":"irs-provides-clarity-on-carbon-capture-tax-credit-rules","status":"publish","type":"post","link":"https:\/\/www.esgtoday.com\/irs-provides-clarity-on-carbon-capture-tax-credit-rules\/","title":{"rendered":"IRS Provides Clarity on Carbon Capture Tax Credit Rules"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\">New rules aimed at removing bottleneck in new carbon capture projects<\/h2>\n\n\n\n<p>The Internal Revenue Service (IRS) has issued guidance intended\nto help businesses understand how they can claim tax credits on carbon capture\nprojects and equipment. The new guidance is intended to provide clarity to\nlegislation passed as part of the Bipartisan Budget Agreement from February\n2018. That legislation enabled companies to claim tax credits for carbon\ndioxide captured using carbon capture equipment, and placed in geological\nstorage, or used for specific applications, including as an injectant used for oil\nand gas extraction, which will remain in geological storage after use.<\/p>\n\n\n\n<p>Specifically, the new IRS notice provides details that help\nbusinesses determine when construction has begun on a qualified facility or on\nequipment in order to be eligible for the credit. Along with the clarification\nnotice, the IRS also a safe harbor provision for carbon capture partnerships,\nin a manner similar to the safe harbor applied to partnerships receiving wind\nenergy production tax credits. The safe harbor rule is intended to simplify the\nprocess for partnerships to be able to claim the carbon capture credit.<\/p>\n\n\n\n<p>Carbon capture technology is a key tool expected to enable energy companies to dramatically lower emissions in coming decades. For example, as part of Dominion Energy\u2019s <a href=\"https:\/\/www.esgtoday.com\/dominion-energy-commits-to-net-zero-emissions-by-2050\/\">announcement this month<\/a> that it would target net zero emissions by 2050, the company identified carbon capture technology as one of the tools showing potential for achieving significant emission reductions, along with large-scale energy storage, hydrogen, and advanced nuclear.<\/p>\n\n\n\n<p>Although the legislation was passed over 2 years ago,\nprogress on carbon capture projects has been slow, as companies have been\nawaiting clarification on the rules prior to investing. Industry observers are\nhoping that the new IRS release will help spur pent up demand for the projects.\nAccording to The Global CCS Institute, an Australia-based carbon capture think\ntank, carbon capture projects are ready for launch in the U.S., and have been\nawaiting IRS guidance.<\/p>\n<!--themify_builder_content-->\n<div id=\"themify_builder_content-228\" data-postid=\"228\" class=\"themify_builder_content themify_builder_content-228 themify_builder tf_clear\">\n    <\/div>\n<!--\/themify_builder_content-->\n<span class=\"et_bloom_bottom_trigger\"><\/span>","protected":false},"excerpt":{"rendered":"<p>New rules aimed at removing bottleneck in new carbon capture projects The Internal Revenue Service (IRS) has issued guidance intended to help businesses understand how they can claim tax credits on carbon capture projects and equipment. The new guidance is intended to provide clarity to legislation passed as part of the Bipartisan Budget Agreement from [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":229,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[17],"tags":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.8.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>IRS Provides Clarity on Carbon Capture Tax Credit Rules - ESG Today<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.esgtoday.com\/irs-provides-clarity-on-carbon-capture-tax-credit-rules\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"IRS Provides Clarity on Carbon Capture Tax Credit Rules - ESG Today\" \/>\n<meta property=\"og:description\" content=\"New rules aimed at removing bottleneck in new carbon capture projects The Internal Revenue Service (IRS) has issued guidance intended to help businesses understand how they can claim tax credits on carbon capture projects and equipment. The new guidance is intended to provide clarity to legislation passed as part of the Bipartisan Budget Agreement from [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.esgtoday.com\/irs-provides-clarity-on-carbon-capture-tax-credit-rules\/\" \/>\n<meta property=\"og:site_name\" content=\"ESG Today\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/ESGToday\/\" \/>\n<meta property=\"article:published_time\" content=\"2020-02-24T14:54:14+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-05-06T10:30:33+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.esgtoday.com\/wp-content\/uploads\/2020\/02\/law-books-291676_1280.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"960\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Mark Segal\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@EsgToday\" \/>\n<meta name=\"twitter:site\" content=\"@EsgToday\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Mark Segal\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.esgtoday.com\/irs-provides-clarity-on-carbon-capture-tax-credit-rules\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.esgtoday.com\/irs-provides-clarity-on-carbon-capture-tax-credit-rules\/\"},\"author\":{\"name\":\"Mark Segal\",\"@id\":\"https:\/\/www.esgtoday.com\/#\/schema\/person\/cca7a2b05e3a06d096e5740fb1433a01\"},\"headline\":\"IRS Provides Clarity on Carbon Capture Tax Credit Rules\",\"datePublished\":\"2020-02-24T14:54:14+00:00\",\"dateModified\":\"2020-05-06T10:30:33+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.esgtoday.com\/irs-provides-clarity-on-carbon-capture-tax-credit-rules\/\"},\"wordCount\":333,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.esgtoday.com\/#organization\"},\"articleSection\":[\"Regulators\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.esgtoday.com\/irs-provides-clarity-on-carbon-capture-tax-credit-rules\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.esgtoday.com\/irs-provides-clarity-on-carbon-capture-tax-credit-rules\/\",\"url\":\"https:\/\/www.esgtoday.com\/irs-provides-clarity-on-carbon-capture-tax-credit-rules\/\",\"name\":\"IRS Provides Clarity on Carbon Capture Tax Credit Rules - 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