Fillable Form 8933 - Carbon Dioxide Sequestration Credit

Form 8933 (2017)

Page

• Would otherwise be released into the atmosphere as

States has exclusive rights according to international law

industrial emission of greenhouse gas, and

with respect to the exploration and exploitation of natural

resources.

• Is measured at the source of capture and verified at the

point of disposal or injection.

Who Can Take the Credit

Qualified carbon dioxide also includes the initial deposit of

Generally, the credit is allowed to the person that captures

captured carbon dioxide used as a tertiary injectant.

and physically or contractually ensures the disposal of or the

However, it doesn't include carbon dioxide that is

use as a tertiary injectant of the qualified carbon dioxide.

recaptured, recycled, or otherwise reinjected as part of the

See Notice 2009-83 for the annual report that is required if

enhanced oil and natural gas recovery process.

the credit is claimed.

Qualified Facility

Specific Instructions

A qualified facility is any industrial facility that is owned by

the taxpayer where carbon capture equipment is placed in

In order to claim the credit, the amount of carbon dioxide

service and that captures at least 500,000 metric tons of

must be measured at the source of capture and verified

carbon dioxide during the tax year.

either at the point of disposal in secure geological storage or

at the point of injection as a tertiary injectant in an enhanced

Industrial Facility

oil or natural gas recovery project. The amount of qualified

An industrial facility is a facility that produces a carbon

carbon dioxide is presumed to be the lesser of the amount

dioxide stream from a fuel combustion source, a

measured at capture and the amount verified at disposal or

manufacturing process, or a fugitive carbon dioxide emission

injection, unless it can be established to the satisfaction of

source that, absent capture and disposal, would otherwise be

the IRS that the greater amount is the correct amount.

released into the atmosphere as industrial emission of

Line 1

greenhouse gas. An industrial facility doesn't include a facility

that produces carbon dioxide from carbon dioxide production

Enter the metric tons of qualified carbon dioxide captured at

wells at natural carbon-dioxide-bearing formations.

a qualified facility, disposed of in secure geological storage,

Secure Geological Storage

and not used as a tertiary injectant in a qualified enhanced

oil or natural gas recovery project. Then, multiply the metric

This includes storage at deep saline formations, oil and gas

tons entered by $22.48.

reservoirs, and unminable coal seams under such conditions

as the IRS may determine under regulations.

Line 2

After 2010 the following apply.

Enter the metric tons of qualified carbon dioxide captured at

• Secure geological storage requires approval by the U.S.

a qualified facility, used as a tertiary injectant in a qualified

Environmental Protection Agency (EPA) of a Monitor, Report

enhanced oil or natural gas recovery project, and disposed

and Verify Plan (MRV Plan) submitted by the operator of the

of in secure geological storage. Then, multiply the metric

storage facility or tertiary injection project.

tons entered by $11.24.

• The annual amount of carbon dioxide claimed for the credit

Paperwork Reduction Act Notice. We ask for the

must be reconciled with amounts reported to the EPA under

information on this form to carry out the Internal Revenue

its Greenhouse Gas Reporting Program, subpart RR.

laws of the United States. You are required to give us the

See the EPA website at and Notice 2009-83,

information. We need it to ensure that you are complying

2009-44 I.R.B. 588, for more information on secure

with these laws and to allow us to figure and collect the right

geological storage. Notice 2009-83 is available at

amount of tax.

You are not required to provide the information requested

Tertiary Injectant

on a form that is subject to the Paperwork Reduction Act

unless the form displays a valid OMB control number. Books

This is an injectant (other than a hydrocarbon injectant that is

or records relating to a form or its instructions must be

recoverable) that is used as part of a tertiary recovery

retained as long as their contents may become material in

method. For more details, see section 193(b).

the administration of any Internal Revenue law. Generally,

Qualified Enhanced Oil or Natural Gas Recovery Project

tax returns and return information are confidential, as

required by section 6103.

A qualified enhanced oil or natural gas recovery project

means any project located in the United States involving the

The time needed to complete and file this form will vary

application of one or more tertiary recovery methods defined

depending on individual circumstances. The estimated

in section 193(b)(3) that can reasonably be expected to result

burden for individual and business taxpayers filing this form

in more than an insignificant increase in the amount of crude

is approved under OMB control number 1545-0074 and

oil or natural gas that will ultimately be recovered and with

1545-0123 and is included in the estimates shown in the

respect to which the first injection of liquids, gases, or other

instructions for their individual and business income tax

matter commences after 1990. The project won't be treated

return. The estimated burden for all other taxpayers who file

as a qualified enhanced crude oil or natural gas recovery

this form is shown below.

project unless the operator submits to the IRS a certification

Recordkeeping

. . . . . . . . . .

1 hr., 54 min.

from a petroleum engineer that the project meets (and

Learning about the law or the form . . . . . . 6 min.

continues to meet) these requirements.

Preparing and sending the form to the IRS . . . 7 min.

United States and U.S. Possessions

If you have comments concerning the accuracy of these

This includes the seabed and subsoil of those submarine

time estimates or suggestions for making this form simpler,

areas that are adjacent to the territorial waters of the United

we would be happy to hear from you. See the instructions

States (or a U.S. possession) and over which the United

for the tax return with which this form is filed.

Form 8933 - Carbon Dioxide Sequestration Credit - 2017 Page 2

Related Articles

Related forms

Related Categories