Form 8933 Carbon Dioxide Sequestration Credit

Form

8933

OMB No. 1545-2132

Carbon Dioxide Sequestration Credit

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

©

2008

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 and, if captured after February 17, 2009, not used as a
tertiary injectant in a qualified enhanced oil or natural gas recovery project.
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 and, if
captured after February 17, 2009, disposed of in secure geological storage.
× $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.

Purpose of Form
Use Form 8933 to claim the carbon dioxide sequestration credit.
The credit is allowed for qualified carbon dioxide that is captured
and disposed of or captured, used, and disposed of by the
taxpayer in secure geological storage. 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 Form 3800, General Business Credit.

How To Figure the Credit
Generally, the credit is $20 per metric ton for qualified carbon
dioxide captured after October 3, 2008, at a qualified facility and
disposed of in secure geological storage and, if captured after
February 17, 2009, not used as a tertiary injectant in a qualified
enhanced oil or natural gas recovery project.
Generally, the credit is $10 per metric ton for 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 and, if captured after February 17, 2009,
disposed of in secure geological storage.
The $20 and $10 rates will be adjusted for inflation for tax
years beginning after 2009. The inflation adjustment factor 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 that:
● Would otherwise be released into the atmosphere as industrial
emission of greenhouse gas, and

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.

Qualified Facility
A qualified facility is any industrial facility that is owned by the
taxpayer where carbon capture equipment is placed in service
and that captures at least 500,000 metric tons of carbon dioxide
during the tax year.

Secure Geological Storage
This includes storage at deep saline formations, oil and gas
reservoirs, and unminable coal seams under such conditions as
the IRS may determine under regulations.

Tertiary Injectant
This is an injectant (other than a hydrocarbon injectant that is
recoverable) that is used as part of a tertiary recovery method.
For more details, see section 193(b).

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 with respect to which the first
injection of liquids, gases, or other matter commences after
1990. 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 above
requirements.

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 (or
U.S. possession) and over which the United States has exclusive
rights according to international law with respect to the
exploration and exploitation of natural resources.

● Is measured at the source of capture and verified at the point
of disposal or injection.
For Paperwork Reduction Act Notice, see back of form.

Cat. No. 37748H

Form

8933

(2008)

Form 8933 (2008)

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.

Specific Instructions
Line 1
Enter the metric tons of qualified carbon dioxide captured after
October 3, 2008, at a qualified facility and disposed of in secure
geological storage and, if captured after February 17, 2009, not
used as a tertiary injectant in a qualified enhanced oil or natural gas
recovery project. Then, multiply the metric tons entered by $20.

Page

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

1 hr., 54 min.

Line 2

Learning about the law or the form

6 min.

Enter the metric tons of 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
and, if captured after February 17, 2009, disposed of in secure
geological storage. Then, multiply the metric tons entered by $10.

Preparing and sending the form
to the IRS

7 min.

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.

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.