“IRS Rules Would Open Doors For Carbon Capture Projects”
Proposed IRS rules on the carbon capture tax credit would allow another avenue for businesses to prove they meet the credit’s requirements for enhanced oil recovery projects, which would provide flexibility for projects without jettisoning monitoring, reporting and verification standards.
…That kind of elasticity bodes well for the market, insofar as investors can experiment with various approaches to attaining the tax treatment, Louis Jenull, partner in Thompson & Knight LLP’s tax practice group, told Law360.
“Maybe an investor decides there’s enough guidance that I can do a smaller deal and see what happens,” he said. “Anything that’s giving us flexibility and details, which I think these proposed regulations did, has got to be viewed as helpful to the market.”