IRS Issues CCS Tax Plan With Split Decision On Key Reporting Issues

The IRS has issued a long-awaited proposed rule outlining how carbon capture and storage (CCS) projects can claim crucial tax credits, rebuffing some industry demands to ease monitoring requirements for oil recovery projects while also rejecting several groups’ calls for full transparency on reporting. In addition, the proposal lays out timeframes for the IRS to “recapture” credits if carbon dioxide leaks back to the atmosphere, provides additional guidance on which projects are eligible for the credits, and tees up issues...