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July 12, 2021
2021-1300

IRS provides guidance for those claiming the IRC Section 45Q carbon capture credit

The IRS has issued guidance (Revenue Ruling 2021-13) clarifying various aspects of the IRC Section 45Q carbon capture credit. The guidance concludes, among other things, that  (1) an acid gas removal unit at an industrial facility constitutes carbon capture equipment; and (2) the person to whom the IRC Section 45Q credit is attributable must own one component of the carbon capture equipment in use. A Tax Alert on the revenue ruling is forthcoming.

 

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