Notice 2026-23

Captura Corporation, a carbon capture technology company, requests that the IRS clarify the 45Q tax credit to include technologies that remove carbon dioxide from the "upper hydrosphere" (ocean absorption) as well as ambient air. They argue that Direct Ocean Capture (DOC) provides the same functional outcome as Direct Air Capture (DAC) and should be eligible for the same tax incentives to expand carbon removal opportunities.

The Carbon Utilization Research Council (CURC), an industry coalition, supports the inclusion of updated regulatory guidance for the Carbon Sequestration Credit (§45Q) in the 2026-2027 Priority Guidance Plan. They argue that the IRS and Treasury must provide clear, long-term certainty regarding secure geologic storage definitions—specifically for projects involving enhanced oil recovery (EOR)—to ensure compliance and support domestic energy production.

The Greater Houston Partnership requests that the Department of the Treasury and the IRS include updating Section 45Q regulations as a priority guidance item for 2026–2027. They argue that updated regulations are necessary to provide clarity and certainty for long-term investments in carbon capture, utilization, and storage projects.

The Carbon Management Alliance (CMA), an informal working group representing companies like ExxonMobil and Kinder Morgan, submitted recommendations to provide legal certainty for the 45Q tax credit. They specifically request that the Treasury Department update regulations to account for a potential EPA repeal of Subpart RR, clarifying requirements for "secure geological storage," reporting obligations, and the fungibility of carbon oxide in shared pipelines.

The CO2 Solutions Coalition, representing carbon dioxide suppliers and end-users, urges the Treasury Department to include updated guidance on the 45Q Carbon Oxide Sequestration credit in the 2026-2027 Priority Guidance Plan. They argue that streamlining the lifecycle assessment (LCA) review process will reduce government waste, lower costs for taxpayers, and ensure a stable supply of CO2 for essential goods like food and medical supplies.

The Carbon Capture Coalition is requesting that the Treasury include specific technical guidance in the 2026-2027 Priority Guidance Plan to provide regulatory certainty for the carbon management sector. They specifically advocate for extending safe harbors for carbon oxide sequestration, clarifying reporting requirements for electricity generating units and direct air capture facilities, and establishing clear rules for disaggregating process trains.

CF Industries, a leading ammonia producer, recommends that updating the regulations under Section 45Q be included in the Department of Treasury and IRS’s 2026-2027 Priority Guidance Plan. The company argues that updated guidance is necessary to provide clarity and investment certainty for carbon capture, utilization, and storage (CCS) projects, especially in light of potential changes to EPA greenhouse gas reporting requirements.

The Global CCS Institute, an international think-tank, recommends that the Department of the Treasury and the IRS include Section 45Q tax credit guidance in the 2026–2027 Priority Guidance Plan. They argue that clear and durable eligibility requirements are essential to provide investment certainty for carbon capture and storage projects, especially in light of regulatory changes regarding the EPA's Greenhouse Gas Reporting Program.

The American Carbon Alliance, a coalition of agricultural, biofuels, and energy stakeholders, requests that the Treasury and IRS provide specific guidance on compliance pathways for Section 45Q carbon oxide sequestration credits. They argue that if the EPA repeals or revises Subpart RR requirements, the IRS should allow Class VI well monitoring and independent mass balance accounting to satisfy monitoring and verification standards to ensure investment certainty.

Baker Botts LLP, representing a client, requests that the IRS include guidance on section 45Q(d)(2)(B) for carbon capture and sequestration in the 2026-2027 Priority Guidance Plan. They argue that the lack of clear guidance on phased construction and unit interchangeability is hindering investment in carbon capture projects at electricity generating facilities.