WASHINGTON – The U.S. Department of the Treasury and the Internal Revenue Service (IRS) today provided guidance for taxpayers claiming the tax credit for carbon capture and sequestration, which was expanded and modified in the One, Big, Beautiful Bill. Notice 2026-01 PDF provides a safe harbor for taxpayers that wish to claim the credit for qualified carbon oxide captured and disposed of in secure geological storage occurring during calendar year 2025.
>> In Other News: CHARBONE Delivers Its First Load Of Clean UHP Hydrogen In Ontario
Safe Harbor
Specifically, Notice 2026-01 provides a safe harbor for determining eligibility for and the amount of the credit for the capture of qualified carbon oxide which is disposed of in secure geological storage in the manner described in the relevant sections of the regulations under section 45Q of the Internal Revenue Code during calendar year 2025.
Under the safe harbor, if the Environmental Protection Agency (EPA) does not launch its electronic Greenhouse Gas Reporting Tool for reporting year 2025 by June 10, 2026, taxpayers may prepare and submit an annual report to a qualified independent engineer or geologist. The engineer or geologist must then certify that the capture and disposal described in the annual report is in compliance with relevant greenhouse gas reporting program requirements as in effect on December 31, 2025, in the manner specified in today’s guidance.
This notice also informs taxpayers that Treasury and IRS intend to issue regulations under section 45Q, including with respect to measurement and verification standards, and that taxpayers may rely on this guidance until the regulations are issued.
Today’s guidance primarily affects businesses planning to claim credits for qualified carbon oxide captured in secure geological storage occurring during calendar year 2025.
For more information about tax provisions under the OBBB, see One, Big, Beautiful Bill Provisions on IRS.gov.
Subscribe to the newsletter
Daily decarbonization data and news delivered to your inbox
Follow the money flow of climate, technology, and energy investments to uncover new opportunities and jobs.
Latest issues
-
Colorado Joins the 7-State CCS Permit Fast Lane
Inside This Issue ⚖️ Colorado Takes Over Class VI Permits: What Changes for CCS? 🏭 Hebei Shoulang Facility Using LanzaTech Technology Achieves World’s First ISCC EU RCF Certification for Ethanol P...
-
The US Hasn't Made Heavy Water Since 1982
Inside This Issue ⚛️ Aternium Completes FEED Studies for US Hydrogen, Heavy Water Project 🐄 Google, McKinsey Strike Brazil Carbon Removal Deal With Silvopasture Project 🔧 Cummins Selects Stargate ...
-
Why Colorado’s Koloma Has Japan’s Largest Utility Hooked
Inside This Issue ⚡ JERA Invests in Koloma to Explore Natural Hydrogen as a Future Low-Carbon Energy 🔬 New CATF Tool Provides Framework for Self-Assessment and Strengthening of Biomass Carbon Remo...
Company Announcements
-
Citi Closes $72 Million Carbon Removal-Linked Note to Support Applied Carbon Biochar Project
HIGHLIGHTS Citi structured an innovative $72 million carbon removal-linked note to provide upfront capital for Applied Carbon's biochar project, marking a first-of-its-kind "outcome bond" for ver...
-
New platform opens access to the same rigorous project evaluations trusted by the world's leading carbon removal procurement programs Today, Relae (formerly Carbon Direct) launched The Diligence C...
-
Inside BLM's 650,000-Acre Bet on Wyoming Carbon Storage
The Bureau of Land Management has offered right-of-way grants covering about 649,438 acres of federal pore space in southwest Wyoming. The September 21, 2026 offers went to Moxa Carbon Storage LLC ...
-
NEW YORK, BUSINESS WIRE, SWITCH Maritime (Switch), a leading developer of zero-emission vessels, secured a Design Basis Agreement (DBA) with the United States Coast Guard (USCG) for the SWITCH-150,...