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The U.S. Treasury Department and the Internal Revenue Service (IRS) have released interim guidance for carbon capture and storage (CCS) companies seeking to claim the federal 45Q tax credit in 2025. This guidance aims to clarify reporting requirements amid uncertainty regarding the Environmental Protection Agency's Greenhouse Gas Reporting Program.

The interim guidance addresses concerns about the Subpart RR processes integral to IRS regulations, which are necessary for taxpayers to understand their reporting obligations for the 2025 calendar year. The guidance is viewed as beneficial for the CCS industry as it enables companies to plan for potential regulatory gaps.