14 August 2026

IRS expands IRC Section 45Q safe harbor to include qualified carbon oxide used as a tertiary injectant

The IRS on August 14, 2026, in Notice 2026-50 (the Notice), released interim guidance related to the credit for carbon oxide sequestration provided by IRC Section 45Q. The Notice expands the safe harbor in Notice 2026-1 to include qualified carbon oxide used as a tertiary injectant in a qualified enhanced oil or natural gas recovery project. A Tax Alert is forthcoming.

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Published by NTD’s Tax Technical Knowledge Services group; Chris DeZinno, legal editor

Document ID: 2026-1747