Form 8933

Department of the Treasury 

Internal Revenue Service

Carbon Dioxide Sequestration Credit

▶ Attach to your tax return.

▶ To claim this credit, the qualified facility must capture at least 500,000 metric 

tons of carbon dioxide during the tax year.

▶ Information about Form 8933 and its instructions is at www.irs.gov/form8933.

OMB No. 1545-0123

2016

Attachment 

Sequence No. 165

Name(s) shown on return Identifying number

Qualified carbon dioxide captured at a qualified facility, disposed of in secure geological 

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

recovery project. 

1a Metric tons captured and disposed of (see instructions) . . . . . .

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

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

Qualified carbon dioxide captured at a qualified facility, disposed of in secure geological 

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

project. 

2a Metric tons captured and used (see instructions) . . . . . . . .

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

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

3 Carbon dioxide sequestration credit from partnerships and S corporations . . . . . . . . 3

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

others, report this amount on Form 3800, Part III, line 1x . . . . . . . . . . . . . . 4

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 dioxide 

sequestration credit. The credit is allowed for qualified 

carbon dioxide that is captured and disposed of or captured, 

used, and disposed of by the taxpayer in secure geological 

storage. Only carbon dioxide captured and disposed of or 

used as a tertiary injectant within the United States or a U.S. 

possession is taken into account when figuring the 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 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

Generally, the credit is $20 (adjusted for inflation) per metric 

ton for qualified carbon dioxide captured at a qualified 

facility, disposed of in secure geological storage, and not 

used as a tertiary injectant in a qualified enhanced oil or 

natural gas recovery project.

Generally, the credit is $10 (adjusted for inflation) per 

metric ton for qualified carbon dioxide captured at a qualified 

facility, used as a tertiary injectant in a qualified enhanced oil 

or natural gas recovery project, and disposed of in secure 

geological storage.

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

carbon dioxide includes only the contained weight of the 

carbon dioxide. The weight of any other substances, such as 

water or impurities, isn't included in the calculation.

Inflation Adjustment

For 2016, the $20 and $10 rates are adjusted for inflation.

The 2016 credit rates are:

• $22.14 for qualified carbon dioxide captured at a qualified 

facility, disposed of in secure geological storage, and not 

used as a tertiary injectant in a qualified enhanced oil or 

natural gas recovery project; and

• $11.07 for qualified carbon dioxide captured at a qualified 

facility, disposed of in secure geological storage, and used 

as a tertiary injectant in a qualified enhanced oil or natural 

gas recovery project.

Definitions

Qualified Carbon Dioxide

Qualified carbon dioxide is carbon dioxide captured after 

October 3, 2008, from an industrial source that:

For Paperwork Reduction Act Notice, see instructions. Cat. No. 37748H Form 8933 (2016)
Form 8933 (2016) Page 2

• Would otherwise be released into the atmosphere as 

industrial emission of greenhouse gas, and

• Is measured at the source of capture and verified at the 

point of disposal or injection.

Qualified carbon dioxide also includes the initial deposit of 

captured carbon dioxide used as a tertiary injectant. 

However, it doesn't include carbon dioxide that is 

recaptured, recycled, or otherwise reinjected as part of the 

enhanced oil and natural gas recovery process.

Qualified Facility

A qualified facility is any industrial facility that is owned by 

the taxpayer where carbon capture equipment is placed in 

service and that captures at least 500,000 metric tons of 

carbon dioxide during the tax year.

Industrial Facility

An industrial facility is a facility that produces a carbon 

dioxide stream from a fuel combustion source, a 

manufacturing process, or a fugitive carbon dioxide emission 

source that, absent capture and disposal, would otherwise be 

released into the atmosphere as industrial emission of 

greenhouse gas. An industrial facility doesn't include a facility 

that produces carbon dioxide from carbon dioxide production 

wells at natural carbon-dioxide-bearing formations.

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:

• Secure geological storage requires approval by the EPA of 

a Monitor, Report and Verify Plan (MRV Plan) submitted by 

the operator of the storage facility or tertiary injection project.

• The annual amount of carbon dioxide claimed for the credit 

must be reconciled with amounts reported to the U.S. 

Environmental Protection Agency (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 commences 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 

with respect to the exploration and exploitation of natural 

resources.

Who Can Take the Credit

Generally, the credit is allowed to the person that captures 

and physically or contractually ensures the disposal of or the 

use as a tertiary injectant of the qualified carbon dioxide.

See Notice 2009-83 for the annual report that is required if 

the credit is claimed.

Specific Instructions

In order to claim the credit, the amount of carbon dioxide 

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 dioxide 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.

Line 1

Enter the metric tons of qualified carbon dioxide captured at 

a qualified facility, disposed of in secure geological storage, 

and not used as a tertiary injectant in a qualified enhanced 

oil or natural gas recovery project. Then, multiply the metric 

tons entered by $22.14.

Line 2

Enter the metric tons of qualified carbon dioxide captured at 

a qualified facility, used as a tertiary injectant in a qualified 

enhanced oil or natural gas recovery project, and disposed 

of in secure geological storage. Then, multiply the metric 

tons entered by $11.07.

Paperwork Reduction Act Notice. We ask for the 

information on this form to carry out the Internal Revenue 

laws of the United States. You are required to give us the 

information. We need it to ensure that you are complying 

with these laws and to allow us to figure and collect the right 

amount of tax.

You are not required to provide the information requested 

on a form that is subject to the Paperwork Reduction Act 

unless the form displays a valid OMB control number. Books 

or records relating to a form or its instructions must be 

retained as long as their contents may become material in 

the administration of any Internal Revenue law. Generally, 

tax returns and return information are confidential, as 

required by section 6103.

The time needed to complete and file this form will vary 

depending on individual circumstances. The estimated 

burden for individual and business taxpayers filing this form 

is approved under OMB control number 1545-0074 and 

1545-0123 and is included in the estimates shown in the 

instructions for their individual and business income tax 

return. The estimated burden for all other taxpayers who file 

this form is shown below.

Recordkeeping . . . . . . . . . . 1 hr., 54 min.

Learning about the law or the form . . . . . . 6 min.

Preparing and sending the form to the IRS . . . 7 min.

If you have comments concerning the accuracy of these 

time estimates or suggestions for making this form simpler, 

we would be happy to hear from you. See the instructions 

for the tax return with which this form is filed.