Form 8933

Department of the Treasury 

Internal Revenue Service

Carbon Oxide Sequestration Credit

▶ Attach to your tax return.

▶ Go to www.irs.gov/Form8933 for the latest information.

OMB No. 1545-0123

Attachment 

2019

Sequence No. 165

Name(s) shown on return Identifying number

Qualified carbon oxide captured using carbon capture equipment originally placed in service 

at a qualified facility before February 9, 2018, disposed of in secure geological storage and not 

used as a tertiary injectant in a qualified enhanced oil or natural gas recovery project, nor 

utilized in a way described in section 45Q(f)(5).

1a Metric tons captured and disposed of . . . . . . . . . . . .

b Inflation-adjusted credit rate . . . . . . . . . . . . . . . .

c Multiply line 1a by line 1b . . . . . . . . . . . . . . . . . . . . . . . . . . 1c

Qualified carbon oxide captured using carbon capture equipment originally placed in service 

at a qualified facility before February 9, 2018, disposed of in secure geological storage and 

used as a tertiary injectant in a qualified enhanced oil or natural gas recovery project, or 

utilized in a way described in section 45Q(f)(5).

2a Metric tons captured and used . . . . . . . . . . . . . . .

b Inflation-adjusted credit rate . . . . . . . . . . . . . . . .

c Multiply line 2a by line 2b . . . . . . . . . . . . . . . . . . . . . . . . . . 2c

Qualified carbon oxide captured using carbon capture equipment originally placed in service 

at a qualified facility on or after February 9, 2018, during the 12-year period beginning on the 

date the equipment was originally placed in service, disposed of in secure geological storage, 

and not used as a tertiary injectant in a qualified enhanced oil or natural gas recovery project, 

nor utilized as described in section 45Q(f)(5). 

3a Metric tons captured and disposed of . . . . . . . . . . . .

b Section 45Q(a)(3) applicable dollar amount (see instructions) . . . . .

c Multiply line 3a by line 3b . . . . . . . . . . . . . . . . . . . . . . . . . . 3c

Qualified carbon oxide captured using carbon capture equipment originally placed in service 

at a qualified facility on or after February 9, 2018, during the 12-year period beginning on the 

date the equipment was originally placed in service, disposed of in secure geological storage, 

and used as a tertiary injectant in a qualified enhanced oil or natural gas recovery project, or 

used as described in section 45Q(f)(5).

4a Metric tons captured and disposed of . . . . . . . . . . . .

b Section 45Q(a)(4) applicable dollar amount (see instructions) . . . . .

c Multiply line 4a by line 4b . . . . . . . . . . . . . . . . . . . . . . . . . . 4c

5 Section 45Q(b)(3) election. Check the box if you’re making the election under section 45Q(b)(3)

6 Section 45Q(f)(6) election. Check the box if you’re making the election under section 45Q(f)(6)

7 Reserved for future use . . . . . . . . . . . . . . . . . . . . . . . . .

8 Carbon oxide sequestration credit from partnerships and S corporations . . . . . . . . . . 8

9 Add lines 1c, 2c, 3c, 4c, and 8. Partnerships and S corporations, report this amount on Schedule K. 

All others, report this amount on Form 3800, Part III, line 1x . . . . . . . . . . . . . . 9

General Instructions

Section references are to the Internal Revenue Code unless 

otherwise noted.

Future Developments

For the latest information about developments related to Form 

8933 and its instructions, such as legislation enacted after they 

were published, go to www.irs.gov/Form8933.

Purpose of Form

Use Form 8933 to claim the section 45Q carbon oxide 

sequestration credit. See Definitions below.

For the purposes of this form, a partner in a partnership that 

has made a valid section 761(a) election will be considered the 

taxpayer. Partnerships with valid section 761(a) elections aren’t 

required to complete or file this form. Instead, the partner is

For Paperwork Reduction Act Notice, see instructions. Cat. No. 37748H Form 8933 (2019)
Form 8933 (2019) Page 2

required to complete and file this form in a manner 

commensurate with its undivided ownership interest in the 

qualified facility.

Taxpayers other than partnerships or S corporations whose 

only source of this credit is from those pass-through entities 

(other than a partnership with a valid 761(a) election) aren’t 

required to complete or file this form. Instead, report this credit 

directly on line 1x of Form 3800, General Business Credit.

How To Figure the Credit

Section 45Q(a)(1) allows a credit of $20 per metric ton of 

qualified carbon oxide captured by the taxpayer 

using carbon capture equipment which is originally placed in 

service at a qualified facility before the date of the 

enactment of the Bipartisan Budget Act (DOE), disposed of by 

the taxpayer in secure geological storage, and not used by the 

taxpayer as a tertiary injectant in a qualified enhanced oil or 

natural gas recovery project.

Section 45Q(a)(2) allows a credit of $10 per metric ton of 

qualified carbon oxide (1) captured by the taxpayer using 

carbon capture equipment which is originally placed in service 

at a qualified facility before DOE, and (2) either (a) used by the 

taxpayer as a tertiary injectant in a qualified enhanced oil or 

natural gas recovery project and disposed of by the taxpayer in 

secure geological storage, or (b) utilized by the taxpayer in a 

manner described in section 45Q(f)(5).

Section 45Q(a)(3) allows a credit of the applicable dollar 

amount (as determined under section 45Q(b)(1)) per metric ton 

of qualified carbon oxide (1) captured by the taxpayer using 

carbon capture equipment which is originally placed in service 

at a qualified facility on or after DOE during the 12-year period 

beginning on the date the equipment was originally placed in 

service, (2) disposed of by the taxpayer in secure geological 

storage, and (3) neither used as a tertiary injectant in a qualified 

enhanced oil or natural gas recovery project nor utilized in a 

manner described in section 45Q(f)(5).

Section 45Q(a)(4) allows a credit of the applicable dollar 

amount (as determined under section 45Q(b)(1)) per metric ton 

of qualified carbon oxide (1) captured by the taxpayer using 

carbon capture equipment which is originally placed in service 

at a qualified facility on or after DOE, during the 12-year period 

beginning on the date the equipment was originally placed in 

service, and (2) either (a) used by the taxpayer as a tertiary 

injectant in a qualified enhanced oil or natural gas recovery 

project and disposed of by the taxpayer in secure geological 

storage, or (b) utilized in a manner described in section 45Q(f)(5).

For purposes of determining the credit, a taxpayer may elect 

under section 45Q(b)(3) to have the dollar amounts applicable 

under section 45Q(a)(1) or (2) apply in lieu of the dollar amounts 

applicable under section 45Q(a)(3) or (4) for each metric ton of 

qualified carbon oxide which is captured by the taxpayer using 

carbon capture equipment which is originally placed in service 

at a qualified facility on or after DOE.

For the purpose of calculating the credit, a metric ton of 

carbon oxide includes only the contained weight of the carbon 

oxide. The weight of any other substances, such as water or 

impurities, isn’t included in the calculation.

2019 credit rates and applicable dollar amounts. The credit 

rates for lines 1b and 2b are increased by the adjustment for 

inflation. The rates are as follows.

• Line 1b: $23.40 per metric ton.

• Line 2b: $11.70 per metric ton.

The section 45Q(b)(1) applicable dollar amounts for lines 3b and 

4b are established by linear interpolation between $22.66 and 

$50, and $12.83 and $35, respectively. The applicable dollar 

amounts are credit rates and as follows.

• Line 3b: $28.74 per metric ton.

• Line 4b: $17.76 per metric ton.

See Notice 2019-31, available at https://www.irs.gov/

irb/2019-20_IRB and Notice 2018-93, available at https://

www.irs.gov/irb/2018-51_IRB#NOT-2018-93.

Amount captured by additional carbon capture equipment 

on existing qualified facility. For a qualified facility placed in 

service before DOE, for which additional carbon capture 

equipment is placed in service on or after DOE, the amount of 

qualified carbon oxide which is captured by the taxpayer is the 

following.

• For purposes of lines 1 and 2, equal to the lesser of (a) the 

total amount of qualified carbon oxide captured at such facility 

for the tax year, or (b) the total amount of the carbon dioxide 

capture capacity of the carbon capture equipment in service at 

such facility on the day before DOE.

• For purposes of lines 3 and 4, an amount (not less than zero) 

equal to the excess of (a) the total amount of qualified carbon oxide 

captured at such facility for the tax year, over (b) the total amount 

of the carbon dioxide capture capacity of the carbon capture 

equipment in service at such facility on the day before DOE.

Definitions

Qualified Carbon Oxide

This is (a) any carbon dioxide captured from an industrial source 

by carbon capture equipment originally placed in service before 

DOE, which would otherwise be released into the atmosphere 

as industrial emission of greenhouse gas or lead to such 

release, and is measured at the source of capture and verified at 

the point of disposal, injection, or use; (b) any carbon dioxide or 

other carbon oxide which is captured from an industrial source 

by carbon capture equipment originally placed in service on or 

after DOE, which would otherwise be released into the 

atmosphere as industrial emission of greenhouse gas or lead to 

such release, and is measured at the source of capture and 

verified at the point of disposal, injection, or use; or (c) in the 

case of a direct air capture facility, any carbon dioxide which is 

captured directly from the ambient air, and is measured at the 

source of capture and verified at the point of disposal, injection, 

or use.

Qualified carbon oxide also includes the initial deposit of 

captured carbon oxide used as a tertiary injectant. It doesn’t 

include carbon oxide that’s recaptured, recycled, and 

re-injected as part of the enhanced oil and natural gas recovery 

process. 

Qualified Facility

This is any industrial facility or direct air capture facility (a) the 

construction of which begins before January 1, 2024, and the 

construction of carbon capture equipment begins before that 

date, or the original planning and design for the facility includes 

installation of carbon capture equipment; and (b) which 

captures:

1. In a facility which emits not more than 500,000 metric tons 

of carbon oxide into the atmosphere during the tax year, not 

less than 25,000 metric tons of qualified carbon oxide during the 

tax year which is used as described under section 45Q(f)(5); or

2. In an electricity generating facility which isn’t described in 

(1), not less than 500,000 metric tons of qualified carbon oxide 

during the tax year, or that captures at least 500,000 metric tons 

of carbon oxide during the tax year; or

3. In a direct air capture facility or any facility not described in 

(1) or (2), not less than 100,000 metric tons of qualified carbon 

oxide during the tax year.
Form 8933 (2019) Page 3

Secure Geological Storage

This includes storage at deep saline formations, oil and gas 

reservoirs, and unminable coal seams under such conditions as 

the IRS may determine under regulations.

After 2010, the following apply.

• Secure geological storage requires approval by the U.S. 

Environmental Protection Agency (EPA) of a Monitoring, 

Reporting, and Verification Plan (MRV Plan) submitted by the 

operator of the storage facility or tertiary injection project.

• The annual amount of carbon oxide claimed for the credit 

must be consistent with amounts reported to the EPA under its 

Greenhouse Gas Reporting Program, subpart RR.

See the EPA website at www.epa.gov and Notice 2009-83, 

2009-44 I.R.B. 588, for more information on secure geological 

storage. Notice 2009-83 is available at www.irs.gov/

irb/2009-44_IRB/ar11.html.

Tertiary Injectant

This is an injectant (other than a hydrocarbon injectant that is 

recoverable) that is used as part of a tertiary recovery method. 

For more details, see section 193(b).

Qualified Enhanced Oil or Natural Gas Recovery 

Project

A qualified enhanced oil or natural gas recovery project means 

any project located in the United States involving the application 

of one or more tertiary recovery methods defined in section 

193(b)(3) that can reasonably be expected to result in more than 

an insignificant increase in the amount of crude oil or natural 

gas that will ultimately be recovered and with respect to which 

the first injection of liquids, gases, or other matter begins after 

1990.

The project won’t be treated as a qualified enhanced crude oil 

or natural gas recovery project unless the operator submits to 

the IRS a certification from a petroleum engineer that the project 

meets (and continues to meet) these requirements.

United States and U.S. Possessions

This includes the seabed and subsoil of those submarine areas 

that are adjacent to the territorial waters of the United States (or 

a U.S. possession) and over which the United States has 

exclusive rights according to international law for the exploration 

and exploitation of natural resources.

Who Can Claim the Credit and Elections

You can elect to have the credit rates applicable to line 1b or 2b 

apply instead of the applicable dollar amounts applicable to 

lines 3b and 4b for each metric ton of qualified carbon oxide 

that is captured by you using carbon capture equipment which 

is originally placed in service at a qualified facility on or after 

DOE.

In the case of qualified carbon oxide captured using carbon 

capture equipment which is originally placed in service at a 

qualified facility before DOE, if you’re the person that captures 

and physically or contractually ensures the disposal, utilization, 

or use as a tertiary injectant of this qualified carbon oxide, the 

credit is attributable to you unless you elect to allow the credit 

to the person that disposes of the qualified carbon oxide, 

utilizes the qualified carbon oxide, or uses the qualified carbon 

oxide as a tertiary injectant. If you make this election, the credit 

won’t be allowed to you.

 The credit is attributable to you in the case of qualified 

carbon oxide captured using carbon capture equipment that is 

originally placed in service at a qualified facility on or after DOE, 

if you’re the person that owns the carbon capture equipment 

and physically or contractually ensures the disposal, utilization, 

or use as a tertiary injectant of this qualified carbon oxide. For 

purposes of section 45Q, for any tax year in which such facility 

is an applicable facility (a facility placed in service before DOE 

and for which no taxpayer claimed a section 45Q credit for any 

tax year ending before DOE) that captures not less than 500,000 

metric tons of qualified carbon oxide during the tax year, you 

can elect to have the facility, and any carbon capture equipment 

placed in service at the facility, treated as if it was placed in 

service on DOE.

Application of Section 45Q for Certain Carbon 

Capture Equipment

In the case of any carbon capture equipment placed in service 

before DOE, the credit will apply to qualified carbon oxide 

captured using such equipment before the end of the calendar 

year in which the Secretary, in consultation with the 

Administrator of the EPA, certifies that, during the period 

beginning after October 3, 2008, a total of 75 million metric tons 

of qualified carbon oxide have been taken into account in 

accordance with section 45Q(a), as in effect on the day before 

DOE, and section 45Q(a)(1) and (2).

▲!

CAUTION

Regulations and other guidance will be issued for this 

credit, including guidance on making elections, to 

ensure proper allocation for qualified carbon oxide 

captured by a taxpayer during the tax year ending 

after DOE, and to determine whether a facility satisfies the 

requirements under section 45Q(d)(1) during such tax year.

Recapture

Regulations will provide for recapturing the benefit of any credit 

allowable under section 45Q for any qualified carbon oxide which 

ceases to be captured, disposed of, or used as a tertiary injectant 

in a manner consistent with the requirements of section 45Q. 

To claim the credit, the amount of carbon oxide must be 

measured at the source of capture and verified either at the 

point of disposal in secure geological storage or at the point of 

injection as a tertiary injectant in an enhanced oil or natural gas 

recovery project. The amount of qualified carbon oxide is 

presumed to be the lesser of the amount measured at capture 

and the amount verified at disposal or injection unless it can be 

established to the satisfaction of the IRS that the greater 

amount is the correct amount.
Form 8933 (2019) Page 

4

Specific Instructions

Line 1b.

Enter $23.40 on line 1b.

Line 2b.

Enter $11.70 on line 2b.

Line 3b.

Enter $28.74 on line 3b.

Line 4b.

Enter $17.76 on line 4b.

Line 7.

Line is reserved for future use.

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