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What changes have been made to the section 45Q tax credit?

The Bipartisan Budget Act of 2018 (P.L. 115-123), which was signed into law on February 9, 2018, made numerous changes to the Section 45Q tax credit, as discussed below. For the purposes of the tax credit, qualified carbon oxide is a carbon oxide that would have been released into the atmosphere if not for the qualifying equipment.

What is the 45Q tax credit?

The 45Q tax credit reduces the cost and risk to private capital of investing in the deployment of carbon management technologies and associated transport and storage infrastructure across a range of industries.

Which facilities are eligible for the 45Q tax credit?

The qualifying facilities for monetary support from the 45Q tax credit include power plants, industrial facilities, other stationary sources that emit CO2, and direct air capture (DAC) facilities. Only facilities physically located within the U.S. are eligible. What are the changes to the 45Q tax credit?

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