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IRS Sets Conditional 2025 Safe Harbor for 45Q Credits if EPA e-GGRT Remains Unavailable

Taxpayers may use independent engineering or geologic certification to validate secure storage for 45Q purposes.

Overview

  • Notice 2026-1 creates a contingent path for calendar-year 2025 claims if the EPA does not relaunch the e-GGRT system by June 10, 2026.
  • Eligibility requires compliance with Subpart RR as in effect on December 31, 2025 and preparation of a full Annual Report consistent with those rules.
  • A qualified independent engineer or geologist registered in any U.S. state must certify the report and provide an affidavit of independence under penalties of perjury.
  • Taxpayers must complete all documentation and obtain the certification by the time they timely file their federal tax returns to rely on the safe harbor.
  • The relief applies only to carbon oxides disposed of in secure geological storage and excludes use as a tertiary injectant in enhanced oil or gas recovery, with advisers urging early engagement of certifiers and strengthened record-keeping.