2021 ] CARBON CAPTURE , UTILIZATION , AND SEQUESTRATION 75
5 . Minimum Term Considerations
As noted above , Section 45Q credits are available with respect to a qualifying CCUS project for twelve years from the date that the applicable facility is placed in service . Tax credits earned in a given year generally are subject to recapture until five years after the last taxable year in which the taxpayer claimed a Section 45Q credit for the applicable project . Thus , the commercial arrangements among the participants in a CCUS project should be maintained for sufficient periods of time to allow the project to earn tax credits during the twelveyear eligibility period and to provide contractual protections and remedies regarding recapture and compliance risk for seventeen years following the inservice date of the applicable project facilities .
IV . CONCLUSION
The recent amendments to Section 45Q have created meaningful economic incentives for energy infrastructure companies and other industrial manufacturers that wish to invest in CCUS technology . CCUS technology will help energy sectors realize synergies to foster a world where the byproducts emitted in the production of our energy are recycled and utilized to create more energy . A recent report on CCUS technologies observed that when “[ v ] iewed through this lens , the U . S . power sector ’ s annual production of [ CO 2 ] represents a potentially prolific economic opportunity : [ CO 2 ] can be captured from power plants and sold for oil production .” 117 The report further went on to determine , “[ o ] ur analysis finds that these recent developments could be the beginnings of a carbon capture revolution ....” 118
117 . Making Carbon a Commodity : The Potential of Carbon Capture RD & D , supra note 5 , at i . 118 . Id . at ii .