Beginning of Construction for the Credit for Carbon Oxide Sequestration under Section 45Q

19 Feb 2020 3:56 PM | Anonymous

Notice 2020-12 addresses the definition of “beginning of construction” for purposes of the carbon oxide sequestration credit under section 45Q. The Notice provides guidance to help businesses determine when construction has begun on a qualified facility or on carbon capture equipment that may be eligible for the section 45Q credit.

Revenue Procedure 2020-12 provides a safe harbor for partnerships to make valid allocations of the carbon oxide sequestration credit under section 45Q. The safe harbor is similar to those developed for partnerships receiving the wind energy production tax credit and the rehabilitation credit. The safe harbor simplifies the application of section 45Q credit rules to partnerships able to claim the credit.

Notice 2020-12 and Revenue Procedure 2020-12 will be published in Internal Revenue Bulletin 2020-11 on March 9, 2020.
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