Law360: Investors Primed To Act On Carbon Tax Credit Guidance

March 17, 2021

O’Melveny partner Jeff Hoffner spoke with Law360 regarding the IRS’s final guidance on the carbon capture tax credit, which has piqued investors’ interest following the US government agency’s revision to Section 45Q, a tax code written to spur companies to help reduce greenhouse gases by increasing their carbon capture efforts.

Despite the presence of other industry tax credits and lingering questions on Section 45Q, attorneys like Hoffner believe it’s only a matter of time before investors jump into the market. “I think at this point, 45Q is a fait accompli,” he said. “Folks are going to try to do some of those deals.”

Interest in the new tax credits is broad, Hoffner added, noting that “it's not just the big [banks] who would be interested in this.”

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