Carbon Capture Tax Credit: Actions Needed to Improve Federal Administration and Evaluation of Tax Expenditure
What GAO Found The Carbon Oxide Sequestration Credit (45Q) is a tax credit provided for certain carbon oxides that are captured at emission sources or directly from the air and either stored underground or used to produce products. The credit has been amended multiple times, including by the 2022 Inflation Reduction Act (IRA), which added new credit features. More recently, the One Big Beautiful Bill Act created parity in credit values across uses of captured carbon. As of March 2026, there were 33 carbon capture facilities in the U.S., with additional facilities planned. The number of 45Q credit claims more than tripled from 2019 to 2023, according to IRS data. The Internal Revenue Service.
Reported by Maria LopezCarbon Capture Tax Credit: Actions Needed to Improve Federal Administration and Evaluation of Tax Expenditure.
The item is dated Thu, 06 Aug 2026 07:25:05 -0400.
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What GAO Found The Carbon Oxide Sequestration Credit (45Q) is a tax credit provided for certain carbon oxides that are captured at emission sources or directly from the air and either stored underground or used to produce products.
The credit has been amended multiple times, including by the 2022 Inflation Reduction Act (IRA), which added new credit features.
More recently, the One Big Beautiful Bill Act created parity in credit values across uses of captured carbon.
As of March 2026, there were 33 carbon capture facilities in the U.S., with additional facilities planned.
The number of 45Q credit claims more than tripled from 2019 to 2023, according to IRS data.
Official Source
GAO reports and testimonies RSS. Accessed 2026-08-06T15:00:12.053Z.