CATF Statement on final 45Q Tax Credit Guidance

The Clean Air Task Force (CATF) welcomes the final IRS guidance on the 45Q tax credit, stating it provides necessary certainty for developers of carbon capture, removal, and storage projects. While CATF supports the IRS's decision to limit credits to captured and utilized carbon oxide rather than CO2 equivalence lifecycle analyses, it notes that the IRS rejected CATF's proposal for public reporting procedures for projects using the ISO standard for CO2-EOR. CATF argues that further measures are needed to reach net-zero emissions by mid-century, including a direct pay mechanism and further extensions of the commence construction deadline.

• The issuance of final 45Q tax credit guidance by the IRS allows developers of carbon capture, removal, and storage to plan projects with greater certainty, following a period of nearly three years of waiting.
• CATF supports the IRS decision to award credits exclusively for qualified carbon oxide that is captured and utilized, rejecting the alternative proposal to award credits based on a CO2 equivalence lifecycle analysis for the reduction of other greenhouse gases.
• The IRS rejected CATF's recommendation to establish public reporting procedures for the amount of carbon oxide sequestered via the ISO standard for CO2-EOR, leading CATF to call on the EPA to amend the Greenhouse Gas Reporting Program to ensure transparency.
• CATF identifies several remaining requirements to scale carbon capture, removal, and storage for mid-century net-zero goals, specifically a direct pay mechanism, further extensions of the commence construction deadline, and incentives tailored to the distinct economics of power, industry, and direct air capture.

APA

akorn (2021). CATF Statement on final 45Q Tax Credit Guidance. Clean Air Task Force. https://www.catf.us/2021/01/catf-statement-on-final-45q-tax-credit-guidance/

Chicago

akorn. CATF Statement on final 45Q Tax Credit Guidance. Clean Air Task Force, 2021. https://www.catf.us/2021/01/catf-statement-on-final-45q-tax-credit-guidance/.

Wikipedia

{{cite press release |last1=akorn |title=CATF Statement on final 45Q Tax Credit Guidance |publisher=Clean Air Task Force |date=7 January 2021 |url=https://www.catf.us/2021/01/catf-statement-on-final-45q-tax-credit-guidance/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{akorn2021catf, author = {akorn}, title = {{CATF Statement on final 45Q Tax Credit Guidance}}, publisher = {Clean Air Task Force}, year = {2021}, month = jan, url = {https://www.catf.us/2021/01/catf-statement-on-final-45q-tax-credit-guidance/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }