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Investing in Carbon Capture, Use and Storage Based on Tax Credits

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After two decades and $4.5 billion of government investment, the Carbon Capture Use and Storage (CCUS) opportunity is at-hand in the United States with the proposed rules being issued by the IRS at the beginning of June 2020 that clarify access to the 45Q tax credit, heralded as the most progressive CCS-specific incentive in the world by many. However, the economic impacts to the economy from COVID-19 are anticipated to reduce the ability of companies involved in CCUS projects to directly monetize the tax credit themselves, and also reduce the potential demand from tax equity markets as many investors face losses that could well carry over into 2021 and 2022.

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Vinson & Elkins and GaffneyCline panelists shared their perspectives on the opportunities and challenges with investing in Carbon Capture, Use and Storage based on Tax Credits.

This presentation was recorded and current as of July 9, 2020. Content viewed after this date may no longer be current.

This information is provided by Vinson & Elkins LLP for educational and informational purposes only and is not intended, nor should it be construed, as legal advice.