Form 8933 Carbon Dioxide Sequestration Credit

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I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
FORM 8933, PAGE 1 of 2
MARGINS: TOP 13mm (1⁄ 2 "), CENTER SIDES. PRINTS: HEAD TO HEAD
PAPER: WHITE, WRITING, SUB. 20
INK: BLACK
FLAT SIZE: 216mm (81⁄ 2 ") 3 279mm (11")
PERFORATE: (NONE)
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

8933

Action

Date

O.K. to print
Revised proofs
requested

OMB No. 1545-xxxx

Carbon Dioxide Sequestration Credit

Department of the Treasury
Internal Revenue Service
Name(s) shown on return

Signature

2008

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Attach to your tax return.

Attachment
Sequence No.
Identifying number

165

Qualified carbon dioxide captured, after October 3, 2008, at a qualified facility and disposed
of in secure geological storage.
1

× $20.00

Metric tons captured and disposed of (see instructions)

1

Qualified carbon dioxide captured, after October 3, 2008, at a qualified facility and used as
a tertiary injectant in a qualified enhanced oil or natural gas recovery project.

× $10.00

2

2

Metric tons captured and used (see instructions)

3

Carbon dioxide sequestration credit from partnerships and S corporations

3

4

Add lines 1, 2, and 3. Partnerships and S corporations, report this amount on Schedule K, all
others, report this amount on Form 3800, line 1x

4

General Instructions

Section references are to the Internal Revenue Code.

Qualified Facility

that

Purpose of Form
Use Form 8933 to claim the carbon dioxide sequestration credit.
The credit is allowed for carbon dioxide that is captured at a
qualified facility and disposed of in secure geological storage or
used as a tertiary injectant in a qualified enhanced oil or natural
gas recovery project. Only carbon dioxide captured and
disposed of or used within the United States or a U.S.
possession is taken into account when figuring the credit. See
Definitions below.
Taxpayers other than partnerships or S corporations whose
only source of this credit is from those pass-through entities are
not required to complete or file this form. Instead, report this
credit directly on line 1x of the 2008 Form 3800, General
Business Credit.

How To Figure the Credit
Generally, the credit for carbon dioxide captured at a qualified
facility is $20 per metric ton disposed of in a secure geological
storage or $10 per metric ton used as a tertiary injectant in a
qualified enhanced oil or natural gas recovery project. The $20
and $10 rates are adjusted for inflation for tax years beginning in
a calendar year after 2009. The inflation adjustment factor (IAF)
for each calendar year is published during the year in the Federal
Register.

Definitions
Qualified Carbon Dioxide
Qualified carbon dioxide is carbon dioxide captured after
October 3, 2008, from an industrial source which:
● Would otherwise be released into the atmosphere as industrial
emission of greenhouse gas, and
● Is measured at the source of capture and verified at the point
of disposal or injection.
Qualified carbon dioxide also includes the initial deposit of
captured carbon dioxide used as a tertiary injectant. However, it
does not include carbon dioxide that is re-captured, recycled,
and re-injected as part of the enhanced oil and natural gas
recovery process.
For Paperwork Reduction Act Notice, see back of form.

A qualified facility is any industrial facility that is owned by the
taxpayer where carbon capture equipment is placed in service
and captures not less than 500,000 metric tons of carbon
dioxide during the year.
at least
tax

Secure Geological Storage
This includes storage at deep saline formations and unminable
coal seems under such conditions as the Secretary may
determine under such regulations.

Tertiary Injectant
This is an injectant other than a hydrocarbon injectant which is
used as a part of a tertiary recovery method.

Qualified Enhanced Oil or Natural Gas Recovery
Project
A qualified enhanced oil or natural gas recovery project means
any project located in the United States involving the application
of one or more tertiary recovery methods defined in section
193(b)(3) that can reasonably be expected to result in more than
an insignificant increase in the amount of crude oil or natural gas
that will ultimately be recovered. The project will not be treated
as a qualified enhanced crude oil or natural gas recovery project
unless the operator submits to the IRS a certification from a
petroleum engineer that the project meets (and continues to
meet) the requirements above.

United States and U.S. Possessions
This includes the seabed and subsoil of those submarine areas
that are adjacent to the territorial waters of the United States
and over which the United States has exclusive rights according
to international law.

Who Can Take the Credit
Generally, the credit is allowed to the person that captures and
physically or contractually ensures the disposal of or the use as
a tertiary injectant of the qualified carbon dioxide.

Cat. No. 37748H

Form

8933

(2008)

3
I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
FORM 8933, PAGE 2 of 2
MARGINS: TOP 13mm (1⁄ 2 "), CENTER SIDES.
PRINTS: HEAD TO HEAD
PAPER: WHITE WRITING, SUB. 20.
INK: BLACK
FLAT SIZE: 216mm (81⁄ 2 ") 3 279mm (11")
PERFORATE: (NONE)
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Form 8933 (2008)

Specific Instructions
Line 1

Page

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Enter the metric tons of qualified carbon dioxide captured at a
qualified facility and disposed of in secure geological storage
after October 3, 2008, and multiply by $20.

Line 2

Enter the metric tons of qualified carbon dioxide captured at a
qualified facility and used as a tertiary injectant in a qualified
enhanced oil or natural gas recovery project after October 3,
2008, and multiply by $10.

Paperwork Reduction Act Notice. We ask for the information
on this form to carry out the Internal Revenue laws of the United
States. You are required to give us the information. We need it
to ensure that you are complying with these laws and to allow us
to figure and collect the right amount of tax.

2

You are not required to provide the information requested on
a form that is subject to the Paperwork Reduction Act unless the
form displays a valid OMB control number. Books or records
relating to a form or its instructions must be retained as long as
their contents may become material in the administration of any
Internal Revenue law. Generally, tax returns and return
information are confidential, as required by section 6103.
The time needed to complete and file this form will vary
depending on individual circumstances. The estimated burden
for individual taxpayers filing this form is approved under OMB
control number 1545-0074 and is included in the estimates
shown in the instructions for their individual income tax return.
The estimated burden for all other taxpayers who file this form is
shown below.
Recordkeeping

x hr., xx min.

Learning about the law or the form

x hr., xx min.

Preparing and sending the form
to the IRS

x hr., xx min.

If you have comments concerning the accuracy of these time
estimates or suggestions for making this form simpler, we would
be happy to hear from you. See the instructions for the tax
return with which this form is filed.

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