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Growth Energy Commends IRS for Finalizing 45Q Safe Harbor
WASHINGTON, D.C.—Growth Energy, the nation’s largest biofuel trade association, applauded the Treasury Department and the Internal Revenue Service (IRS) today after the agencies published a notice for taxpayers seeking to claim the 45Q tax credit for carbon sequestration.
American ethanol producers, and Growth Energy’s members in particular, are leaders in the deployment of carbon capture, utilization, and sequestration (CCUS) technology. Today’s notice provides a safe harbor that allows taxpayers to verify carbon sequestration, making it easier for participating biofuel producers to claim the 45Q tax credit for 2025.
“American ethanol producers have always been on the cutting edge of carbon capture technology,” said Growth Energy CEO Emily Skor. “This safe harbor affirms the investments our members have made in CCUS today and supports more investment in CCUS in the future. We applaud the IRS and Treasury for working quickly to provide certainty for the 2025 tax year and look forward to working with them to continue supporting innovation and investment in rural communities across the U.S.”
Read the IRS announcement here.
Background
Earlier this year, the U.S. Environmental Protection Agency (EPA) announced that it would reconsider the Greenhouse Gas Reporting Program, a part of which companies would use to verify and report their geologic carbon sequestration for the 45Q tax credit. Concerned about the impact of this proposal on those that rely on the program for verification, Growth Energy filed comments with EPA in November urging the agency to “do no harm” until a solution can be put in place by the Department of Treasury. With today’s action, IRS has provided such a solution, giving taxpayers a safe harbor to verify carbon sequestration they can use to claim the credit in 2025.
The post Growth Energy Commends IRS for Finalizing 45Q Safe Harbor appeared first on Growth Energy.
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