Carbon Oxide Sequestration Tax Credit
The Inflation Reduction Act significantly extended Section 45(Q), which provides $85 per metric ton increased from $50 per metric ton and $180 per metric ton for carbon dioxide captured using direct air capture technology. Reductions in the tax credit amounts due to tax-exempt bond financing and yearly threshold amount of carbon oxide that must be captured for a facility to qualify for the tax credit apply; additional qualification threshold reductions also apply for direct air capture facilities and for certain electricity-generating facilities. This law also, significantly, delays the deadline for starting construction of facilities and carbon capture equipment from 2025 to 2032.
![](https://www.taxcreditalliance.com/wp-content/uploads/2023/03/carbon-oxide-sequestration-tax-credit-768x432.jpg)
![](https://www.taxcreditalliance.com/wp-content/uploads/2023/02/federal-tax-credits-hydrogen-2200-768x432.jpg)
Production Credits
Clean Hydrogen Production Tax Credit
Awards tax credit for clean hydrogen production.
![](https://www.taxcreditalliance.com/wp-content/uploads/2023/03/carbon-oxide-sequestration-tax-credit-768x432.jpg)
Production Credits
Carbon Oxide Sequestration Tax Credit
Tax credits targeting the capture of carbon dioxide.