In a new Revenue Ruling, the IRS addresses the scope, ownership, and placed-in-service date for carbon capture equipment.

Key Points:

..Developers adding carbon capture equipment to an existing industrial facility now have clarity on the starting date for 45Q Credits.

..The placed-in-service date of a “single process train” is the relevant date for purposes of 45Q Credits, and not the placed-in-service dates of individual components.

..A single process train of carbon capture equipment is considered placed in service for 45Q purposes when the full process train is ready to capture and process carbon oxide.