Overview
Bloomberg Tax quoted Hunter Johnston in a June 22 article titled "White House Gave IRS More Power in Carbon Capture Rule Changes." The article discusses how the White House review of proposed rules for an expanded credit for capturing and storing carbon dioxide resulted in changes that give the IRS more time to take back the credits in case of carbon leaks. Officials changed the "recapture" period to five years while the rules were under review, an increase from the three years proposed in the initial draft. According to the article, this increases the financial risk for investors in these projects, as they’re generally the ones reaping the tax benefits and want some assurance that the IRS won’t take them back.
Johnston, who is involved with the Carbon Capture Coalition lobbying group, says: "That provides some markers that there’s a difference of opinion in the administration. Where five years came from, I don’t know, but I’m going to find out."
The full article can be read at Bloomberg Tax.
