Final regulations on the section 45Q carbon oxide sequestration credit appear in today’s edition of the Federal Register.
These final regulations provide certainty for developers and investors on credit eligibility requirements, and largely follow the proposed regulations with some favorable changes—most notably the credit recapture period has been shortened from five years to three years.
There are still some areas that will likely require additional guidance, but these regulations are expected to be welcomed by developers, investors, and other participants in the carbon capture value chain.
Read a January 2021 report [PDF 3.8 MB] prepared by KPMG LLP that includes an overview of the newly issued regulations and some initial observations.
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