• IRS releases first of CCS tax credit guidance

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      Patrick Lavery

      Combustion Industry News Editor

The Internal Revenue Service of the United States has published the first two draft guidance items on the implementation of 45Q tax credits for carbon capture and storage installations. One of the items covers what must be done to demonstrate that construction on a project has begun (so that credits can then be claimed), while the other outlines how different parties involved in a project can claim credits. They are seen by industry as a good start, but not yet sufficient for companies with planned projects to launch them, according to the article by the Washington Examiner. Guidance on how to demonstrate that carbon dioxide is being securely stored, and on under what conditions the government can refuse to grant credits, as well as on how to account for emissions reductions, is still outstanding, but the IRS has said that further guidance will be released “in the near future”.