IR-2025-122, Dec. 19, 2025
The Department of the Treasury and the Internal Revenue Service provided guidance for taxpayers claiming the tax credit for carbon capture and sequestration, which has been expanded and modified. Notice 2026-01 provides a safe harbor for taxpayers that wish to claim the credit for qualified carbon oxide captured and disposed of in secure geological storage occurring during calendar year 2025.
Specifically, Notice 2026-01 provides a safe harbor for determining eligibility for and the amount of the credit for the capture of qualified carbon oxide which is disposed of in secure geological storage in the manner described in the relevant sections of the regulations under section 45Q of the Internal Revenue Code during calendar year 2025.
This guidance primarily affects businesses planning to claim credits for qualified carbon oxide captured in secure geological storage occurring during calendar year 2025.
If you have questions about this issue or other policy matters, please contact NCACPA Coordinator of Advocacy & Outreach Will Edmondson.