Legal Alert: IRS issues new Section 45Q CCUS ruling

The IRS issued Revenue Ruling 2021-13 on July 1, 2021, which provides additional guidance regarding the section 45Q carbon capture, utilization and storage (CCUS) credit. More specifically, the ruling concludes that:

  • A taxpayer needs to own only one component of carbon capture equipment within a single process train to be the person that is entitled to the tax credit.
  • For section 45Q purposes, the placed in service date of the single process train is the date on which the new components of carbon capture equipment are installed, notwithstanding the inclusion of existing equipment in the single process train.

Read the full Legal Alert here.

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