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.

OMB No. 1545-2132

2011

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, line 1x . . . . . . . . . . . . . . . . . 4

For Paperwork Reduction Act Notice, see instructions. Cat. No. 37748H Form 8933 (2011)
Form 8933 (2011) Page 2

What's New. Qualified carbon dioxide now includes carbon dioxide that is 

captured and sequestered under the qualifying advanced coal project program of 

section 48A or the qualifying gasification project program of section 48B.

General Instructions

Section references are to the Internal Revenue Code.

Purpose of Form

Use Form 8933 to claim the 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 are not 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) are not 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, is not included in the calculation.

Inflation Adjustment

For 2011, the $20 and $10 rates are adjusted for inflation.

The 2011 credit rates are:

• $20.37 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

• $10.19 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:

• 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 does not include carbon dioxide 

that is re-captured, recycled, or otherwise re-injected 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 

does not 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.

See 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 will not 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 $20.37.

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 $10.19.

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 taxpayers filing this form is 

approved under OMB control number 1545-0074 and is included in the estimates 

shown in the instructions for their individual 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.