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Carbon capture tax credit claims face long delays and rejections
['Editor-In-Chief', 'Michael Cohn', 'Editor-In-Chief Of Accountingtoday.Com', 'Has Been Covering Business', 'Technology For A Variety Of Publications Since Prior To...', 'Technology Editor']
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As of March 2026, there were 33 carbon capture facilities in the U.S., with more facilities planned.
The number of 45Q credit claims more than tripled from 2019 to 2023, according to data from the Internal Revenue Service.
The IRS has taken several actions to administer the 45Q tax credit and avoid potential noncompliance.
However, taxpayers using carbon to create products face compliance burdens, delays and uncertainty in claiming the credit, according to the report.
These include determining a time period of carbon capture data needed to begin claiming the credit, and clarifying datasets acceptable for calculating carbon displaced.