Share with your friends

KPMG report: Final regulations on carbon oxide sequestration credit

Final regulations on carbon oxide sequestration credit

Final regulations on the section 45Q carbon oxide sequestration credit appear in today’s edition of the Federal Register.


Related content

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.

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Want to do business with KPMG?


loading image Request for proposal