Page 85 - IRS Business Tax Credits Guide

12:51 - 5-Jan-2023
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Fileid: … ns/i8933/202212/a/xml/cycle06/source
The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
1. The electing taxpayer’s name, address, taxpayer capture equipment after such equipment is originally
identification number, location, and e-GGRT ID number(s) placed in service.
(if available) of each qualified facility where carbon oxide Application of Section 45Q for Certain
was captured;
2. The full amount of credit attributable to the taxpayer Carbon Capture Equipment
prior to the election; In the case of any carbon capture equipment placed in
3. The name, address, and taxpayer identification service before February 9, 2018, the credit will apply to
number of each credit claimant, and the location and EPA qualified carbon oxide captured using such equipment
e-GGRT ID number(s) (if available) of each secure before the end of the calendar year in which the
geological storage facility where the qualified carbon Secretary, in consultation with the Administrator of the
oxide is disposed of or injected; EPA, certifies that, during the period beginning after
4. The dollar amount of credits the taxpayer is allowing October 3, 2008, a total of 75,000,000 metric tons of
each credit claimant to claim and the corresponding qualified carbon oxide have been taken into account in
metric tons of qualified carbon oxide; and accordance with section 45Q(a), as in effect on the day
5. The dollar amount of credits retained by the electing before February 9, 2018, and section 45Q(a)(1) and (2).
taxpayer and the corresponding metric tons of qualified Effective August 16, 2022, in the case of any carbon
carbon oxide. capture equipment placed in service before February 9,
Information required to be provided by credit claim- 2018, the credit will apply to qualified carbon oxide
captured using such equipment before the earlier of
ant. Credit claimant must include the following January 1, 2023, and the end of the calendar year in
information on Form 8933 with its timely filed federal which the Secretary, in consultation with the Administrator
income tax return or Form 1065 (including extensions). of the EPA, certifies that during the period beginning after
• The name, address, and taxpayer identification number October 3, 2008, a total of 75,000,000 metric tons of
of the credit claimant; qualified carbon oxide have been taken into account in
• The name, address, and taxpayer identification number accordance with section 45Q(a), as in effect on the day
of each taxpayer making an election under section 45Q(f) before February 9, 2018, and section 45Q(a)(1) and (2).
(3)(B) to allow the credit to the credit claimant;
• The location and EPA e-GGRT ID number(s) (if When Construction Begins
available) of each qualified facility where carbon oxide Two methods can be used to establish that construction of
was captured; a qualified facility or carbon capture equipment has
• The location and EPA e-GGRT ID number(s) (if begun.
available) of each secure geological storage facility where
the qualified carbon oxide is disposed of or injected; 1. Physical Work Test is satisfied when physical
• The full dollar amount of credits attributable to each work of a significant nature begins and other requirements
electing taxpayer prior to the election and the provided in section 5 of Notice 2020-12, 2020-11 I.R.B.
corresponding metric tons of carbon oxide; 495, available at IRS.gov/irb/2020-11_IRB#NOT-2020-12,
• The dollar amount of credits that each electing taxpayer are met.
is allowing the credit claimant to claim and the 2. Five Percent Safe Harbor is satisfied when you
corresponding metric tons of carbon oxide; and pay or incur (within the meaning of Regulations section
• A copy of the electing taxpayer’s Form 8933. 1.461-1(a)(1) and (2)) five percent or more of the total cost

Section 45Q(f)(9) Election of a qualified facility or carbon capture equipment and
meets other requirements provided in Notice 2020-12,
For purposes of section 45Q(a)(3) and (4), a person section 6.
described in section 45Q(f)(3)(A)(ii) may elect, at such Although both methods can be used, only one method
time and in such manner as the Secretary may prescribe, is needed to establish that construction of a qualified
to have the 12-year period begin on the first day of the first facility or carbon capture equipment has begun. If you
tax year in which a credit under this section is claimed for began construction on a qualified facility or carbon
carbon capture equipment that’s originally placed in capture equipment by satisfying either the Physical Work
service at a qualified facility on or after February 9, 2018, Test or the Five Percent Safe Harbor Test, or both, before
if: the effective date of Notice 2020-12 (March 9, 2020), you
• No one claimed a credit under this section for such may use March 9, 2020, as the date that construction
carbon capture equipment for any prior tax year; began on such qualified facility or carbon capture
• The qualified facility at which such carbon capture equipment. Additionally, if you began construction on a
equipment is placed in service is located in an area qualified facility or carbon capture equipment before
affected by a federally declared disaster (as defined by March 9, 2020, under both the Physical Work Test and the
section 165(i)(5)(A)) after the carbon capture equipment is Five Percent Safe Harbor, you may choose either method
originally placed in service; and (but not both) for the purpose of applying the beginning of
• Such federally declared disaster results in a cessation construction rules. If you began construction on a qualified
of the operation of the qualified facility or the carbon facility or carbon capture equipment on or after March 9,
2020, construction will be deemed to have begun on the

-6- Instructions for Form 8933 (Rev. 12-2022)