8933 Carbon Oxide Sequestration Credit

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Form

8933

Carbon Oxide Sequestration Credit

(Rev. December 2024)

OMB No. 1545-2132

Attach to your tax return.
Go to www.irs.gov/Form8933 for instructions and the latest information.

Department of the Treasury
Internal Revenue Service

Attachment
Sequence No.
Identifying number

Name(s) shown on return

Part I

165

TREASURY/IRS
AND OMB USE
ONLY DRAFT
July 9, 2024
DO NOT FILE

Information About Facility, Carbon Capture Equipment, DAC Facility, Carbon Oxide Sequestration
Types, Credit Calculation, and Your Elections

Section 1—Facility Information
1

If making an elective payment election or transfer election, enter the IRS-issued registration number for the facility:

2
3
4a
b

Facility’s EPA e-GGRT ID number(s), if available:
Type (disposal in geological storage, enhanced oil or natural gas recovery, utilization):
If different than filer, enter (i) owner’s name:
and (ii) owner’s TIN:
Address of the facility (if applicable):

c

Coordinates.

(i) Latitude:

(ii) Longitude:

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Enter a “+” (plus) or “-” (minus) sign in the first box.

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7

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Enter a “+” (plus) or “-” (minus) sign in the first box.

Date construction began (MM/DD/YYYY):
Date placed in service (MM/DD/YYYY):
Total metric tons of carbon oxide captured during the tax year:

Section 2—Industrial Facility Information
8

Reserved for future use.

9

Is the facility an electricity-generating facility? .

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10

Is the facility a direct air capture (DAC) facility? If “Yes,” skip to line 16

11

If the facility isn’t an electricity-generating or DAC facility, state the nature of the facility (for example, ethanol
production, cement manufacturing, etc.):

12

Does the facility described above process carbon dioxide or any other gas from underground deposits?
a

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Yes No

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If you answered “Yes” to line 12, was any gas obtained from a carbon dioxide production well at natural carbon
dioxide-bearing formations or at a naturally occurring subsurface spring, which means a well that contains 90% or
greater carbon dioxide by volume? . . . . . . . . . . . . . . . . . . . . . . . . . .

b If you answered “Yes” to line 12a, you can’t treat the facility as a qualified industrial facility to the extent that it
processed gas described on line 12a during the tax year. See line 12c.
c

If you answered “Yes” to line 12a, do you attest that you meet the exception for a deposit that contains a product,
other than carbon oxide, that’s commercially viable to extract and sell without taking into account the availability
of a commercial market for the carbon oxide that’s extracted or any carbon oxide sequestration credit (credit) that
might be available? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

d If you answered “Yes” to line 12c, have you attached an attestment letter from an independent registered
engineer? Don’t treat the facility as a qualified industrial facility unless you answered “Yes” to both lines 12c and
12d. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
13

What were the emissions of carbon oxide during the tax year (amount released to the atmosphere plus amount
captured)?
a

Of the amount listed on line 13, what amount was carbon dioxide?

b Of the amount listed on line 13, what amount was carbon monoxide?
14

Were first-year carbon oxide emissions annualized for this tax year?
a

15

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If you answered “Yes” to line 14, state the annualized carbon oxide emissions and attach a statement that shows
how you determined the annualized carbon oxide emissions:
Was aggregation of multiple facilities required to achieve the requisite carbon capture thresholds?

a

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If you answered “Yes” to line 15, attach a statement that lists the facilities and describes the appropriateness of
their aggregation.

For Paperwork Reduction Act Notice, see separate instructions.

Cat. No. 37748H

Form 8933 (Rev. 12-2024)

Page 2

Form 8933 (Rev. 12-2024)

Section 3—Carbon Capture Equipment and DAC Facility Information
Yes No
16

Is carbon captured by a DAC facility?

17

Reserved for future use.

18

Was any carbon capture equipment placed in service on or after February 9, 2018, and before 2023? See
instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

19

Reserved for future use.

20

Are you the owner of the carbon capture equipment described in Section 1?
a

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AND OMB USE
ONLY DRAFT
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If you answered “No” to line 20, state your authority for claiming the credit:

21

Reserved for future use.

22

For the carbon capture equipment described in Section 1, what was the carbon capture capacity on or after
February 9, 2018?

23

Was additional equipment installed on or after February 9, 2018?
a

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Reserved for future use.

b Reserved for future use.
c

Is the placed-in-service date of the carbon capture equipment described on line 23 determined pursuant to the
80/20 rule? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

d If you answered “Yes” to line 23c, state your investment in:
(i) New carbon capture equipment

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(ii) The fair market value of pre-existing carbon capture equipment .

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e

If the placed-in-service date of the carbon capture equipment was determined pursuant to the 80/20 rule, did you
include its investment in a transportation pipeline as new carbon capture equipment? . . . . . . . . .

f

If you answered “Yes” to line 23e, state your investment in a transportation pipeline:

24

What was the total amount of carbon oxide captured during the tax year (in metric tons)?
a

Of the amount listed on line 24, what amount was carbon dioxide?

b Of the amount listed on line 24, what amount was carbon monoxide?
25

Were first-year carbon oxide emissions annualized for this tax year?
a

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If you answered “Yes” to line 25, state the annualized carbon oxide emissions:

Section 4—Information About Carbon Oxide Sequestration Credit and Your Elections
Yes No
26

During the tax year, are other parties contractually ensuring disposal, injection, or utilization of qualified carbon
oxide captured at this facility? . . . . . . . . . . . . . . . . . . . . . . . . . . . .

27

For this tax year, do you elect to allow any of the parties described on line 26 to claim some or all of the credit? .

28

Do you elect under section 45Q(b)(3) to apply the $10 and $20 rates (adjusted for inflation) instead of the
applicable dollar amounts? . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
a

If you answered “Yes” to line 28, determine the credit using $27.75 on Part III, line 1g; and $13.88 on Part III, line
2g or 3g, for tax years beginning in 2024. See instructions for the inflation-adjusted rates applicable in later tax
years.

b If you answered “No” to line 28 and your carbon capture facility and equipment were placed in service before
2023, determine the credit using $43.92 on Part III, line 1g; and $30.07 on Part III, line 2g or 3g, for tax years
beginning in 2024. See Notice 2018-93 for the applicable dollar amounts in later tax years.
c

If you answered “No” to line 28 and your carbon capture equipment was placed in service after 2022, determine
the credit using $17 on Part III, line 1g; and $12 on Part III, line 2g or 3g. For a DAC facility, determine the credit
using $36 on Part III, line 1g; and $26 on Part III, line 2g or 3g.
Form 8933 (Rev. 12-2024)

Page 3

Form 8933 (Rev. 12-2024)

Section 4—Information About Carbon Oxide Sequestration Credit and Your Elections (continued)
Yes No
29

Is the facility described in Section 1 an applicable facility and are you making the election under section 45Q(f)(6)?
If you answered “Yes” to line 29, determine the credit using the same rates listed on line 28b. See instructions .

30

Does the facility capture qualified carbon oxide and dispose of it in secure geological storage?
If you answered “Yes” to line 30, use Part III, line 1, to figure your credit amounts for disposal.

31

Does the facility capture qualified carbon oxide, use it as a tertiary injectant in a qualified enhanced oil or natural
gas recovery project, and dispose of it in secure geological storage? . . . . . . . . . . . . . . .
If you answered “Yes” to line 31, use Part III, line 2, to figure your credit amounts for injection.

32

Does the facility capture qualified carbon oxide and utilize it as described in section 45Q(f)(5)? .
If you answered “Yes” to line 32, use Part III, line 3, to figure your credit amounts for utilization.

33

Does the facility meet the prevailing wage and apprenticeship (PWA) requirement? . . . . . . . . . .
If you answered “Yes” to line 33, you may qualify for an increased credit amount. See instructions for Part III, lines
1i, 2i, and 3i.

Part II

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TREASURY/IRS
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ONLY DRAFT
July 9, 2024
DO NOT FILE
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Information About You

Check the applicable box(es).
1

You have obtained an analysis of lifecycle greenhouse gas emissions (LCA) approved by the IRS .

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2

You physically or contractually ensured the capture of qualified carbon oxide during the tax year .

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3

You physically or contractually ensured the disposal, usage as a tertiary injectant in a qualified enhanced oil or natural gas
recovery project, or utilization of captured qualified carbon oxide during the tax year . . . . . . . . . . . . .

4

You elected to allow another taxpayer to claim the carbon oxide sequestration credit that you would’ve otherwise been
entitled to . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5

Another taxpayer elected to allow you to claim the carbon oxide sequestration credit that they would’ve otherwise been
entitled to . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6

You’re making the election under section 45Q(b)(3) .

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You’re making the election under section 45Q(f)(6)

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You’re making the election under section 45Q(f)(9)

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Part III

Credit Calculations

Caution: See instructions to determine your qualification for the increased credit amounts by meeting certain requirements.
Note: Enter the applicable inflation-adjusted credit rate or applicable dollar amount on line 1g, 2g, or 3g (see instructions).
1

Qualified carbon oxide captured using carbon capture equipment or DAC
facility, disposed of in secure geological storage, and not used as a
tertiary injectant in a qualified enhanced oil or natural gas recovery
project, nor utilized as described in section 45Q(f)(5).
a Metric tons captured and measured at the point of disposal . . . . . .
1a
b Metric tons captured and securely stored (physically
disposed) by you . . . . . . . . . . . .
1b
c Metric tons captured and securely stored (physically
disposed) by another person . . . . . . . .
1c
d Add lines 1b and 1c . . . . . . . . . . . . . . . . . . .
1d
e Metric tons captured and securely stored (physically
disposed) by another person and for which you allow
that person to claim the resulting carbon oxide
sequestration credit. See instructions for attaching
Schedule E (Form 8933) for each disposal site . . .
1e
f Subtract line 1e from line 1d . . . . . . . . . . . . . . . . .
1f
g Credit rate or applicable dollar amount (see instructions) . . . . . . .
1g
h Multiply line 1f by line 1g . . . . . . . . . . . . . . . . . . . . . . . . . .
i Increased credit amount for qualified facility and equipment. If you answered “Yes” in Part I, line 33,
multiply the amount on line 1h by 5.0. Otherwise, enter the amount from line 1h. See instructions for
attaching Schedule A (Form 8933) and Schedule B (Form 8933) . . . . . . . . . . . . .

1h

1i
Form 8933 (Rev. 12-2024)

Page 4

Form 8933 (Rev. 12-2024)

Part III

Credit Calculations (continued)

2

Qualified carbon oxide captured using carbon capture equipment or DAC
facility, used as a tertiary injectant in a qualified enhanced oil or natural
gas recovery project, and disposed of in secure geological storage.
a Metric tons captured and measured at the point of injection . . . . . .
2a
b Metric tons captured and injected by you . . . .
2b
c Metric tons captured and injected by another person
2c
d Add lines 2b and 2c . . . . . . . . . . . . . . . . . . .
2d
e Metric tons captured and injected by another person
and for which you allow that person to claim the
resulting carbon oxide sequestration credit. See
instructions for attaching Schedule E (Form 8933) for
each recovery project . . . . . . . . . . .
2e
f Subtract line 2e from line 2d . . . . . . . . . . . . . . . . .
2f
g Credit rate or applicable dollar amount (see instructions) . . . . . . .
2g
h Multiply line 2f by line 2g . . . . . . . . . . . . . . . . . . . . . . . . . .
i Increased credit amount for qualified facility and equipment. If you answered “Yes” in Part I, line 33,
multiply the amount on line 2h by 5.0. Otherwise, enter the amount from line 2h. See instructions for
attaching Schedule A (Form 8933) and Schedule C (Form 8933) . . . . . . . . . . . . .

3

TREASURY/IRS
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Qualified carbon oxide captured using carbon capture equipment or DAC
facility, and utilized as described in section 45Q(f)(5).
a Metric tons captured and measured at the point of utilization . . . . . .
3a
3b
b Metric tons captured and physically utilized by you .
c Metric tons captured and physically utilized by another
person . . . . . . . . . . . . . . . .
3c
d Add lines 3b and 3c . . . . . . . . . . . . . . . . . . .
3d
e Metric tons captured and physically utilized by another
person and for which you allow that person to claim
the resulting carbon oxide sequestration credit
(expressed as carbon dioxide equivalents that were
determined pursuant to an approved LCA). See
instructions for attaching Schedule E (Form 8933) for
each utilization facility . . . . . . . . . . .
3e
3f
f Subtract line 3e from line 3d . . . . . . . . . . . . . . . . .
g Credit rate or applicable dollar amount (see instructions) . . . . . . .
3g
h Multiply line 3f by line 3g . . . . . . . . . . . . . . . . . . . . . . . . . .
i Increased credit amount for qualified facility and equipment. If you answered “Yes” in Part I, line 33,
multiply the amount on line 3h by 5.0. Otherwise, enter the amount from line 3h. See instructions for
attaching Schedule F (Form 8933) . . . . . . . . . . . . . . . . . . . . . . .

4

2i

3h

3i

Carbon oxide sequestration credit that another taxpayer elected under
section 45Q(f)(3)(B) to allow you to claim. See instructions for attaching
Schedule A (Form 8933), Schedule E (Form 8933), and Schedule F (Form
8933). Provide basic information for the three largest elections (in dollars)
on lines 4a, 4b, and 4c; report all others on line 4e.
(i) EIN of
electing
taxpayer

(ii) Metric tons
elected

(iii) Credit
rates

(iv) Credit elected.
Multiply column (ii)
by column (iii).

a
b
c
4d
d Add lines 4a, 4b, and 4c in column (iv) . . . . . . . . . . . . .
e Report all other carbon oxide sequestration credit that another taxpayer
elected under section 45Q(f)(3)(B) to allow you to claim. See instructions . .
4e
f Add lines 4d and 4e . . . . . . . . . . . . . . . . . . . . . . . . .
5
Carbon oxide sequestration credit from partnerships and S corporations (see instructions) . .
6
Add lines 1i, 2i, 3i, 4f, and 5. Partnerships and S corporations, report this amount on Schedule
others, report this amount on Form 3800, Part III, line 1x . . . . . . . . . . . . .
7

2h

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K.
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All
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Carbon oxide sequestration credit recaptured. See instructions for attaching Schedule D (Form 8933)
and for reporting this amount on the appropriate line of your return . . . . . . . . . . . .

4f
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7
Form 8933 (Rev. 12-2024)