Taxpayers who own and place into service carbon capture equipment may be eligible to claim the section 45Q credit. This credit is meant to incentivize investment in carbon capture and usage and storage/sequestration projects (CCUS projects). Although the credit has been in existence since 2008, the Bipartisan Budget Act of 2018 amended the credit to further incentivize investment in these sorts of projects. Here is a look at a few of the new incentives:
- Larger credit amount.
- 12-year claim period instead of the 75 million metric ton cap in place before 2018.
- Allowing the credit for CO2 utilization in addition to enhanced oil recovery and for direct air capture.
- Smaller facilities can be eligible (minimum eligibility thresholds reduced).
- Permitting owners of carbon capture equipment to claim tax credits instead of the person capturing the CO2.
Join us to discuss section 45Q eligibility, claim process, credit amounts, and more.
- Define the Section 45Q Carbon Oxide Sequestration Credit.
- Identify eligibility requirements.
- Describe the credit claim process.
- Discuss credit amounts.
- Summarize the incentives introduced in 2018.
Mark Rogers, Principal, Business Credits & Incentives | Eide Bailly
Mark has over 18 years of experience helping taxpayers identify and implement tax saving strategies made available through building, acquiring, renovating and designing property. As a leader in the Business Credits & Incentives arena, Mark oversees a national team of CPAs, Professional Engineers, energy modelers, LEED professionals, architects, HERS raters and construction specialists. The BCI group has professionals with wide industry experience performing fixed asset planning, 179D energy deduction, cost segregation, 45L energy credit, 45Q CCS credit, tangible property regulations and construction tax planning studies.
Adam Sweet, J.D., LL.M., Principal-in-Charge of Passthrough Entity Consulting | Eide Bailly
Adam leads Eide Bailly's Passthrough Entity Consulting group. He has extensive knowledge in the area of partnership tax, including interpreting partnership agreements, allocation and distribution provisions, and issuing compensatory equity. He is also experienced with both the buying and selling sides of domestic and foreign joint ventures, tax credit partnerships, as well as a variety of IRS controversy matters. Adam also leads Eide Bailly’s Opportunity Zone working group.
Jim Donovan, CPA, Partner-in-Charge of R&D Tax Incentives | Eide Bailly
Jim has more than 20 years of tax consulting experience helping clients benefit from federal and state incentives, including credits for activities most consider a necessity to remain competitive in today’s global market. Jim oversees the employee retention credit and R&D tax credit practices and is a leader in the Business Credits & Incentives space. He also assists clients in sustaining their credits if examined by a federal or state authority. Jim has authored articles on tax incentives and actively presents on business credits and incentives at conferences and webinars.
Mel Schwarz, JD, CPA, Director of Legislative Affairs | Eide Bailly
Mel has over 37 years of experience specializing in legislative affairs, including development and implementation of tax legislation at the national level. He spent 6 years on the staff of the Joint Committee on Taxation and has served as the chairman of the Tax Legislation Committee of the AICPA. He spends his time at the capitol meeting with legislators, listening in on updates impacting tax processes and procedures and providing timely updates and education on issues and opportunities impacting clients. He is a sought-after speaker for many AICPA, TEI and FEI conferences.
CPE Credit: 1
Field of Study: Taxes
Level of Knowledge: Basic
Delivery Method: Group-Internet Based
Additional Information: This is a Group-Internet Based Webinar. No prerequisites or advanced preparation required. For information regarding a complaint and/or program cancellation policies, please contact Amy DeGeorge.