Back to All Media IRS Issues Safe Harbor for Section 45Q Carbon Capture Credits On December 19, 2025, the IRS issued Notice 2026-1, providing a safe harbor for taxpayers seeking to claim the federal income tax credit for qualified carbon oxide sequestration under section 45Q of the Internal Revenue Code of 1986, as amended (the “Code”). The Notice addresses a compliance gap created by the Environmental Protection Agency’s (“EPA”) proposed repeal of greenhouse gas reporting requirements that are currently necessary to claim the credit. Share Article On December 19, 2025, the IRS issued Notice 2026-1, providing a safe harbor for taxpayers seeking to claim the federal income tax credit for qualified carbon oxide sequestration under section 45Q of the Internal Revenue Code of 1986, as amended (the “Code”). The Notice addresses a compliance gap created by the Environmental Protection Agency’s (“EPA”) proposed repeal of greenhouse gas reporting requirements that are currently necessary to claim the credit.