ISO 27914:2026 Standard Released for Carbon Storage, Potentially Replacing Subpart RR
ISO 27914:2026 offers a new framework for carbon dioxide storage in geological formations, which may replace Subpart RR for tax credit eligibility. This development is crucial for ensuring continuity in claiming Section 45Q carbon sequestration tax credits amidst potential regulatory changes by the EPA.
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The International Organization for Standardization (ISO) has published ISO 27914:2026, a standard focused on underground CO2 storage in non-hydrocarbon geological formations. This new standard could serve as an alternative to Subpart RR under the GHGRP, which is essential for the Section 45Q tax credit.
Currently, the IRS has provided a safe harbor for the 2025 tax year, allowing continued reporting under Subpart RR given compliance verification by independent professionals. The revised ISO standard enhances requirements for storage calculations and monitoring, making it a viable substitute should Subpart RR be repealed. Approval from ANSI is pending, and future guidance from Treasury and the IRS will be necessary to clarify the transition.
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