Update on the Status of 45Q Tax Incentives and How to Prepare

McGuireWoods partner Durham McCormick and McGuireWoods Consulting senior vice president Ryan Bernstein presented at a United States Energy Association program on the status of the carbon sequestration tax credit under Section 45Q of the tax code. The Internal Revenue Service recently closed its comment period requesting public feedback on crafting regulations for applying Section 45Q enhanced tax incentives for the geological storage of carbon dioxide and its use in enhanced oil recovery. The conference reviewed current research on carbon capture utilization and storage technology and the policy and project implications of using 45Q tax credits.