Increase Cash Flow. Benefit from the 45Q Tax Credit.

Benefit from the 45Q Tax Credit 
The Section 45Q Carbon Oxide Sequestration tax credit is a great way for organizations to reduce carbon emissions in the atmosphere, as well as invest back into their business. The IRS incentivizes businesses who invest in carbon capture and usage, storage/sequestration projects (CCUS projects), causing project developers and investors to take a fresh look at CCUS projects.  

Despite complexities, the 45Q carbon capture tax credit can significantly increase your cash flow.  

Qualifying for 45Q 
Section 45Q tax credit is generally based upon the quantity of captured carbon oxide/dioxide. The credit amount also depends on how the carbon oxide/dioxide is used after it is captured.  

45Q allows for $85 per metric ton if sequestered and $60 per metric ton if utilized. The Section 45Q tax credit is generally claimed over a 12-year period beginning when carbon capture equipment is placed into service. 

Organizations should consider these criteria for the 45Q tax credit: 

• Monetization options such as traditional tax credit partnerships and direct transfer to third parties 
• Tax Form 8933 and Model Certificates and any tax footnotes 
• Documentation needed for amount, dates and disclosures. 
• Physically or contractually ensure the capture and disposal of qualified carbon oxide/dioxide 
• Use qualified carbon oxide/dioxide as a tertiary injectant in a qualified enhanced oil or natural gas recovery project 

Partner with Eide Bailly to Maximize Your Tax Savings 
Eide Bailly’s Business Credits & Incentives (BC&I) team will help you benefit from the Section 45Q Carbon Oxide Sequestration tax credit and increase your cash flow. Our advisors are knowledgeable and experienced with 45Q and many other tax incentives. 

Our clients are supported by our:  

• Nationally recognized industry specialists  
• Team of accountants, CPAs, lawyers, professional engineers and energy modelers  
• Ability to quickly assess eligibility and maximize the 45Q tax credit    

Ready to start increasing your cash flow? 
Partner with a trusted firm to help you benefit from the 45Q Tax Credit.