Energy - Fossil Fuels

Expensing of Exploration and Development Costs, Other Fuels

Established for this category in 1966, the expensing of costs associated with exploration and development refers to the ability of some extractive industries to deduct these costs fully from their taxable income immediately or as they are incurred rather than waiting for those activities to generate income. This is an exception to general tax rules, […]

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Carbon Capture and Sequestration Credit (45Q)

Qualifying taxpayers can claim the carbon capture and sequestration credit—often referred to by its section in the tax code (45Q)—for every metric ton of carbon oxide they capture and sequester that would have otherwise been released into the atmosphere. Congress created the 45Q credit in the Emergency Economic Stabilization Act of 2008 (commonly, the “Bank […]

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