IRS Requests Comments on Credit for Carbon Oxide Sequestration
On May 20, 2019, the Internal Revenue Service (IRS) published in Internal Revenue Bulletin No. 2019-21 Notice 2019-32 requesting general comments about the section 45Q credit for the sequestration of carbon oxide in anticipation of issuing regulations to implement the provisions of the section. The IRS is also requesting comments specifically on:
- the secure geological storage and measurement of qualified carbon oxide,
- the recapture of the benefit of the credit for carbon oxide sequestration, and
- other issues described in section 3 of the notice.
This credit stemmed from bipartisan legislation and could be beneficial to small entities involved in the oil and gas industry, small engineering firms, and start-ups.
The comment period closes July 5, 2019.