1-Hour Program

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Overview

The Biden Administration intends to bring climate change issues center stage and it can be expected to use tax provisions to implement its climate change agenda.  Of the existing tax provisions incentivizing green behavior, the section 45Q tax credit for carbon capture and sequestration is a key element.  Following taxpayer-favorable revisions in 2018, the credit has begun to stimulate qualifying investments.  Final regulations expected in 2021 should provide the certainty needed to accelerate the development of a vibrant tax equity market for carbon capture, similar to the market that has developed for renewable energy projects. An understanding of section 45Q will be a useful tool with which to view the green tax initiatives we can expect to see under the new Administration.

James Chenoweth of Gibson, Dunn & Crutcher LLP, Peter J. Connors of Orrick, Herrington & Sutcliffe LLP, and Barbara de Marigny of Baker Botts L.L.P. will discuss:

  • An overview of section 45Q and its scope (10 minutes)
  • The reasons for current interest and the 2018 expansion of section 45Q (5 minutes)
  • The proposed regulations and other IRS guidance, including rules relating to: (15 minutes)
    • Qualified carbon oxide, industrial facility, qualified facility, carbon capture equipment
    • Sequestration, secure geological storage and utilization
    • Recapture
  • The placed-in-service and beginning of construction requirements (10 minutes)
  • Monetizing and transferring the credit and potential tax equity structures (10 minutes)
  • The state of the tax equity market (5 minutes)
  • The impact of possible legislative initiatives on section 45Q (5 minutes)

 

Program Level:  Update  

Intended Audience:  Outside attorneys, in-house counsel, accounting and investment professionals, and tax and financial advisors involved with Section 45Q 

Prerequisites:  None 

Advanced Preparation:  None 

 

Credit Details

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