On May 28, 2020, the U.S. Treasury Department and Internal Revenue Services (IRS) issued proposed regulations on the implementation of the 45Q tax credit, which was signed into law as part of the Bipartisan Budget Act of 2018 on February 8, 2018. The proposed regulations also address taxpayer questions regarding: procedures to determine adequate security measures for the geological storage of qualified carbon oxide, exceptions to the general rule for determining who the credit is attributable to, procedures for a taxpayer to make an election to allow third-party taxpayers to claim the credit, standards for measuring utilization of qualified carbon oxide, and rules for credit recapture. Earlier this year, the IRS released guidance defining beginning and continuous construction project requirements (Notice 2020-12) as well as guidance on a revenue procedure establishing rules for business partnerships involving investors claiming the tax credit (Revenue Procedure 2020-12). To learn more, visit the IRS website.