Carbon Credit §45Q Tax Calculator 2026 — CCUS, DAC & EOR Credit Schedule
Calculate the §45Q carbon capture credit: $85/ton CCUS, $180/ton DAC, $60/ton EOR over a 12-year period. Includes prevailing wage bonus rates, transferability toggle, and multi-project aggregation.
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Annual Credit
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12-Year Total Credit
$85/ton
Effective Credit Rate
Tax Offset
Credit Mechanism
§45Q Credit Analysis
How to Use This §45Q Carbon Credit Calculator
Select your carbon capture technology type and enter annual CO₂ tonnage. If you meet prevailing wage and registered apprenticeship requirements, you qualify for the full credit rate (5× the base rate). The credit runs for 12 years from the facility's placed-in-service date and can be used against income tax, sold under §6418, or claimed as direct pay by eligible entities.
The Formula
Annual Credit = Tons Captured × Credit Rate per Ton
Full Rate (PW+App): CCUS $85 | DAC $180 | EOR $60 per ton
Base Rate (no PW/App): CCUS $17 | DAC $36 | EOR $12 per ton
12-Year Total = Annual Credit × 12
Transferable: Sell at market rate (typically 85–95¢ per $1 of credit)
Full Rate (PW+App): CCUS $85 | DAC $180 | EOR $60 per ton
Base Rate (no PW/App): CCUS $17 | DAC $36 | EOR $12 per ton
12-Year Total = Annual Credit × 12
Transferable: Sell at market rate (typically 85–95¢ per $1 of credit)
Example
50,000 ton/year CCUS facility, prevailing wage met, placed in service 2026:
Annual Credit: 50,000 × $85 = $4,250,000
12-Year Total: $4,250,000 × 12 = $51,000,000
If sold via §6418 at 90¢: 12-year cash proceeds ≈ $45,900,000
Annual Credit: 50,000 × $85 = $4,250,000
12-Year Total: $4,250,000 × 12 = $51,000,000
If sold via §6418 at 90¢: 12-year cash proceeds ≈ $45,900,000
Extended
12-Year Credit Schedule & Multi-Project Aggregation
Generate a year-by-year §45Q credit table, toggle transferability, aggregate multiple projects, and visualize cumulative credits on an SVG line chart
Build a multi-project §45Q portfolio. Add projects, toggle transferability and direct pay per project, and view the cumulative credit timeline.
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Typical §6418 transfer market: 85–95¢ per $1 credit 12-Year Aggregate Credit Schedule
| Year | Calendar Yr | Annual Credit | Cumulative Credit | Transfer Value |
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Cumulative §45Q Credit Over 12 Years
Frequently Asked Questions
What is the §45Q Carbon Capture Credit and who qualifies?
Section 45Q provides a per-ton tax credit for carbon dioxide (CO₂) captured and stored or utilized. The credit rates under the Inflation Reduction Act: $85/ton for secure geological storage (CCUS), $180/ton for direct air capture (DAC), and $60/ton for enhanced oil recovery (EOR). The facility must begin construction before 2033 and capture at least 1,000 metric tons per year for industrial sources (or lower thresholds for DAC). The credit period is 12 years from placed-in-service date.
What are prevailing wage and apprenticeship requirements for the full credit?
To claim the full §45Q rates ($85/$180/$60/ton), the facility must meet prevailing wage requirements (workers paid at Davis-Bacon wages) and apprenticeship requirements (minimum percentage of labor hours by registered apprentices: 12.5% in 2023–2024, 15% from 2025 onward). Facilities that do not meet these requirements receive only 20% of the base credit rate ($17/ton CCUS, $36/ton DAC, $12/ton EOR).
Can the §45Q credit be transferred or sold?
Yes. Under the Inflation Reduction Act (§6418), §45Q credits are transferable — the credit owner can sell the credit to an unrelated third party in exchange for cash. The transferee takes the credit against their own tax liability, and the cash proceeds to the seller are generally not taxable income. Additionally, tax-exempt entities and governmental entities can elect direct pay (cash refund) under §6417, making 45Q fully accessible to entities that would not otherwise have tax liability.
What is the difference between CCUS, DAC, and EOR?
CCUS (Carbon Capture, Utilization, and Storage) involves capturing CO₂ from industrial sources (power plants, cement, steel) and storing it underground in geological formations. DAC (Direct Air Capture) pulls CO₂ directly from ambient air using chemical processes — more expensive but qualifies for the highest credit rate ($180/ton) due to its greater climate benefit. EOR (Enhanced Oil Recovery) uses captured CO₂ to extract more oil from mature reservoirs — lower rate ($60/ton) as the CO₂ is utilized for a commercial purpose.
Is the §45Q credit subject to recapture?
Yes. The 45Q credit is subject to recapture if the CO₂ is released back into the atmosphere during the recapture period. For geological storage, monitoring must demonstrate permanent sequestration. The IRS can recapture credits if CO₂ later leaks from the storage reservoir. For EOR, the CO₂ must be used as described; if it escapes or is otherwise misused, recapture may apply. Robust monitoring, reporting, and verification (MRV) programs are essential to protect claimed credits.