Guardian of the Galaxy? The Section 45Q Carbon Capture Tax Credit

PLI Chronicle: Insights & Perspectives for the Legal Community
January.15.2021

Carbon capture, use and storage (CCUS) is generally regarded as the most critical feature of any climate plan to arrive at net zero greenhouse gas emissions by the year 2050, and bipartisan U.S. legislation has embraced it. Internal Revenue Code section 45Q offers a federal income tax credit for CCUS to incentivize investment in projects that reduce emission of greenhouse gases. This article, co-authored by Orrick’s Peter Connors, summarizes the regulations governing this tax credit.