§45(Q) CREDIT BACKGROUND INFORMATION
To receive 45Q credits, a taxpayer must demonstrate that CO2 from a qualifying industrial source, that would otherwise be released, has been captured with a qualified Facility and has been properly sequestered and the sequestration has been properly monitored.
For a Facility to be validly Placed in Service, construction of the Facility must be commenced prior to January 1, 2033. Once a Facility has been placed in service, the Facility is eligible to produce tax credits for the following 12 years.
Credits can be allocated on an annual basis by the capturing entity to other parties involved in the process.
IRS Guidance and Revenue Procedures for Section 45Q can be found at the following web addresses:
https://www.irs.gov/pub/irs-drop/n-09-83.pdf