IRS Extends 45Q Carbon Capture Tax Credit, ARCH2 Lifeline

Treasury and the IRS have quietly patched a hole in the 45Q carbon capture tax credit that EPA was about to punch open, and this time the fix isn't set to expire at the end of the year. On August 14, Treasury and the IRS issued Notice 2026-50, expanding and extending a safe harbor for companies claiming the Section 45Q credit for carbon dioxide sequestration. It's dry tax plumbing, but it matters to anyone in Appalachia counting on carbon capture projects to be profitable enough to actually get built — and that includes the blue hydrogen crowd using Marcellus and Utica gas as feedstock.

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