IRS Extends 45Q Carbon Storage Safe Harbor

The U.

S. Treasury and IRS are using a temporary safe-harbor framework to help taxpayers claim Section 45Q credits for carbon captured and stored in qualifying geologic formations. The guidance allows independent engineers or geologists to certify storage when EPA reporting requirements or electronic systems are unavailable, while leaving aspects of Subpart RR monitoring and verification unresolved. The framework provides continuity for carbon-storage projects but does not eliminate uncertainty over eligible pathways, reporting procedures, and future EPA rules.