Federal Tax Credits · Carbon Capture · FED-CC-001
Carbon Oxide Sequestration Credit (Internal Revenue Code §45Q)
Publication revised September 24, 2026. Sourcebook page 13.
Credit amount / calculation
Per-metric-ton credit; amount varies by source, capture method, use/storage and wage/apprenticeship compliance.
Illustrative business benefit
Calculation illustration only: 10,000 verified eligible metric tons multiplied by an assumed applicable rate of $85 per ton would give $850,000. The $85 rate is not a determination for this project; source type, use/storage, construction dates and labor rules determine the actual rate.
Timing / first action
Check application or certification requirements before incurring the qualifying expense or beginning the qualifying activity.
Official sources
Related programs
Clean Electricity Investment Credit (Internal Revenue Code §48E)
Generally
Potentially relevant when a forest-products facility owns qualifying zero-emission generation or energy-storage property.
Clean Electricity Production Credit (Internal Revenue Code §45Y)
Production-based
Alternative to the investment credit for owners/operators of qualifying clean-electricity facilities; potentially relevant to qualifying on-site generation.
Clean Fuel Production Credit (Internal Revenue Code §45Z)
Per-gallon or gallon-equivalent credit based on the
Potentially relevant only if a forest-products business actually produces qualifying transportation fuel.
Historic Preservation Tax Credit
Percentage of qualified rehabilitation expenditures under
Certified historic mills and industrial buildings can qualify for an allocated rehabilitation credit.
Historic Rehabilitation Tax Credit
Percentage of qualified rehabilitation expenditures subject
Certified historic mills and industrial properties can qualify for a state rehabilitation credit.
Brownfields Jobs Tax Credit
Jobs-tax-credit framework
A business redeveloping a certified brownfield can use jobs credits without the ordinary minimum-job threshold.