On November 3, 2022, the Department of Treasury (Treasury) issued a Request for Comments to help it develop guidance to implement the IRC section 45Q Carbon Oxide Sequestration tax credit. The credit was expanded by section 13104 of the IRA.
The Treasury request asked for comments on direct air capture (DAC) technologies, methodologies for DAC carbon oxide accounting, planning and design of qualified EGU facilities, capture design capacity, designed annual and average annual carbon oxide production, and actual versus potential EGU electric output. For records and recordkeeping requirements, Treasury asked whether facility level data could satisfy the required capture amounts, how operators could demonstrate the capacity factor and carbon oxide production requirements, how electric generating units should demonstrate the 75 percent baseline carbon oxide requirement, among other questions.
The deadline to submit initial comments in response to the request was December 3, 2022.