Carbon Capture 45Q Credit Revenue
Translate capture throughput into 45Q tax credit revenue with adjustable credit rates, multipliers, and inflation factors for storage or utilisation pathways.
This tool does not constitute tax advice. Consult project finance counsel and tax advisors to confirm eligibility, compliance, and monetisation strategies for 45Q credits.
Examples
- 1,200 t/day, $85/ton, multiplier 1.0, 340 days ⇒ 1,200.00 tonnes/day over 340.00 days at $85.00 and a 1.00 multiplier yields $34,680,000.00 in annual credits, or $2,890,000.00 per month before transfer fees.
- 650 t/day, $60/ton, multiplier 0.8, 300 days, inflation 1.03 ⇒ 650.00 tonnes/day for 300.00 days with a $60.00 statutory rate ×1.03 inflation ($61.80 effective) and 0.80 multiplier generates $9,640,800.00 annually, or $803,400.00 per month.
FAQ
Can I include carbon intensity premiums from offtake contracts?
Add the additional revenue per tonne to the credit rate before running the calculation to see blended tax plus market value.
How do recapture provisions affect the estimate?
The calculator assumes full qualification. If storage integrity is breached, recaptured credits may need to be repaid—model that separately as a risk adjustment.
What documentation supports 45Q claims?
Keep engineering reports, lifecycle analyses, and third-party verification that substantiate captured volumes, transport, and storage pathways to satisfy IRS requirements.
Additional Information
- The capture method multiplier is 1.0 for secure geologic storage and 0.8 for utilisation, mirroring the Section 45Q statute.
- Inflation adjustment multiplies the statutory rate by the IRS inflation factor published each year so your forecast matches Form 8933 guidance.
- Monthly credit value divides the annual total by 12 so you can align the estimate with cash-flow models for transferability or tax equity deals.