Form 8933 (2019)
Page 2
required to complete and file this form in a manner
commensurate with its undivided ownership interest in the
qualified facility.
Taxpayers other than partnerships or S corporations whose
only source of this credit is from those pass-through entities
(other than a partnership with a valid 761(a) election) aren’t
required to complete or file this form. Instead, report this credit
directly on line 1x of Form 3800, General Business Credit.
How To Figure the Credit
Section 45Q(a)(1) allows a credit of $20 per metric ton of
qualified carbon oxide captured by the taxpayer
using carbon capture equipment which is originally placed in
service at a qualified facility before the date of the
enactment of the Bipartisan Budget Act (DOE), disposed of by
the taxpayer in secure geological storage, and not used by the
taxpayer as a tertiary injectant in a qualified enhanced oil or
natural gas recovery project.
Section 45Q(a)(2) allows a credit of $10 per metric ton of
qualified carbon oxide (1) captured by the taxpayer using
carbon capture equipment which is originally placed in service
at a qualified facility before DOE, and (2) either (a) used by the
taxpayer as a tertiary injectant in a qualified enhanced oil or
natural gas recovery project and disposed of by the taxpayer in
secure geological storage, or (b) utilized by the taxpayer in a
manner described in section 45Q(f)(5).
Section 45Q(a)(3) allows a credit of the applicable dollar
amount (as determined under section 45Q(b)(1)) per metric ton
of qualified carbon oxide (1) captured by the taxpayer using
carbon capture equipment which is originally placed in service
at a qualified facility on or after DOE during the 12-year period
beginning on the date the equipment was originally placed in
service, (2) disposed of by the taxpayer in secure geological
storage, and (3) neither used as a tertiary injectant in a qualified
enhanced oil or natural gas recovery project nor utilized in a
manner described in section 45Q(f)(5).
Section 45Q(a)(4) allows a credit of the applicable dollar
amount (as determined under section 45Q(b)(1)) per metric ton
of qualified carbon oxide (1) captured by the taxpayer using
carbon capture equipment which is originally placed in service
at a qualified facility on or after DOE, during the 12-year period
beginning on the date the equipment was originally placed in
service, and (2) either (a) used by the taxpayer as a tertiary
injectant in a qualified enhanced oil or natural gas recovery
project and disposed of by the taxpayer in secure geological
storage, or (b) utilized in a manner described in section 45Q(f)(5).
For purposes of determining the credit, a taxpayer may elect
under section 45Q(b)(3) to have the dollar amounts applicable
under section 45Q(a)(1) or (2) apply in lieu of the dollar amounts
applicable under section 45Q(a)(3) or (4) for each metric ton of
qualified carbon oxide which is captured by the taxpayer using
carbon capture equipment which is originally placed in service
at a qualified facility on or after DOE.
For the purpose of calculating the credit, a metric ton of
carbon oxide includes only the contained weight of the carbon
oxide. The weight of any other substances, such as water or
impurities, isn’t included in the calculation.
2019 credit rates and applicable dollar amounts. The credit
rates for lines 1b and 2b are increased by the adjustment for
inflation. The rates are as follows.
• Line 1b: $23.40 per metric ton.
• Line 2b: $11.70 per metric ton.
The section 45Q(b)(1) applicable dollar amounts for lines 3b and
4b are established by linear interpolation between $22.66 and
$50, and $12.83 and $35, respectively. The applicable dollar
amounts are credit rates and as follows.
• Line 3b: $28.74 per metric ton.
• Line 4b: $17.76 per metric ton.
See Notice 2019-31, available at https://www.irs.gov/
irb/2019-20_IRB and Notice 2018-93, available at https://
www.irs.gov/irb/2018-51_IRB#NOT-2018-93.
Amount captured by additional carbon capture equipment
on existing qualified facility. For a qualified facility placed in
service before DOE, for which additional carbon capture
equipment is placed in service on or after DOE, the amount of
qualified carbon oxide which is captured by the taxpayer is the
following.
• For purposes of lines 1 and 2, equal to the lesser of (a) the
total amount of qualified carbon oxide captured at such facility
for the tax year, or (b) the total amount of the carbon dioxide
capture capacity of the carbon capture equipment in service at
such facility on the day before DOE.
•
For purposes of lines 3 and 4, an amount (not less than zero)
equal to the excess of (a) the total amount of qualified carbon oxide
captured at such facility for the tax year, over (b) the total amount
of the carbon dioxide capture capacity of the carbon capture
equipment in service at such facility on the day before DOE.
Definitions
Qualified Carbon Oxide
This is (a) any carbon dioxide captured from an industrial source
by carbon capture equipment originally placed in service before
DOE, which would otherwise be released into the atmosphere
as industrial emission of greenhouse gas or lead to such
release, and is measured at the source of capture and verified at
the point of disposal, injection, or use; (b) any carbon dioxide or
other carbon oxide which is captured from an industrial source
by carbon capture equipment originally placed in service on or
after DOE, which would otherwise be released into the
atmosphere as industrial emission of greenhouse gas or lead to
such release, and is measured at the source of capture and
verified at the point of disposal, injection, or use; or (c) in the
case of a direct air capture facility, any carbon dioxide which is
captured directly from the ambient air, and is measured at the
source of capture and verified at the point of disposal, injection,
or use.
Qualified carbon oxide also includes the initial deposit of
captured carbon oxide used as a tertiary injectant. It doesn’t
include carbon oxide that’s recaptured, recycled, and
re-injected as part of the enhanced oil and natural gas recovery
process.
Qualified Facility
This is any industrial facility or direct air capture facility (a) the
construction of which begins before January 1, 2024, and the
construction of carbon capture equipment begins before that
date, or the original planning and design for the facility includes
installation of carbon capture equipment; and (b) which
captures:
1. In a facility which emits not more than 500,000 metric tons
of carbon oxide into the atmosphere during the tax year, not
less than 25,000 metric tons of qualified carbon oxide during the
tax year which is used as described under section 45Q(f)(5); or
2. In an electricity generating facility which isn’t described in
(1), not less than 500,000 metric tons of qualified carbon oxide
during the tax year, or that captures at least 500,000 metric tons
of carbon oxide during the tax year; or
3. In a direct air capture facility or any facility not described in
(1) or (2), not less than 100,000 metric tons of qualified carbon
oxide during the tax year.
