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
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Percentage of qualified rehabilitation expenditures under current IEDA program rules.
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Historic Rehabilitation Tax Credit
Percentage of qualified rehabilitation expenditures subject to certification/allocation.
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Brownfields Jobs Tax Credit
Jobs-tax-credit framework with brownfield-specific relaxation of minimum job requirement.
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