U.S. IRS Expands and Extends Safe Harbor for Section 45Q Carbon Oxide Sequestration Credit

The U.S. IRS has issued Notice 2026-50 which expands and extends the safe harbor previously provided in Notice 2026-1 for taxpayers claiming the Section 45Q credit for carbon oxide sequestration. Notice 2026-1 provided interim guidance in response to proposed Environmental Protection Agency (EPA) regulations that would remove certain reporting obligations for geological sequestration of carbon dioxide under subpart RR of the Greenhouse Gas Reporting Program.

Notice 2026-50 expands the safe …