A Year After Tax Credit Win, Carbon Capture Backers Wait for IRS

Investors are still sitting on the sidelines more than a year after Congress passed bipartisan tax incentives for carbon capture technology, and it’s not for lack of interest.

It’s because investors—along with coal companies, oil and gas companies, industrial manufacturers, and startups focused on using captured carbon—are waiting on federal tax regulators to lay out the rules for how to claim the credits.

The Internal Revenue Service has yet to move forward with guidance to implement the so-called 45Q tax credits for carbon capture technology, extended and expanded by Congress in a bipartisan budget bill in February 2018.

Without ...