Form 8933: The Carbon Oxide Sequestration Credit
Published November 8, 2026
Form 8933 is used to claim the carbon oxide sequestration credit under section 45Q of the Internal Revenue Code. The credit is for qualified carbon oxide captured at a qualified facility and then stored or used in a qualifying way. The form is attached to the tax return.
This post is general information from the IRS form and its instructions. It does not say whether a project qualifies, and it does not give tax advice for a particular facility.
Part I: facility information
Part I asks for facility details. The first lines ask for the IRS registration number if the filer makes an elective payment or transfer election. They also ask for the EPA e-GGRT ID number, when one is available.
The form asks for the facility type. The codes are GEO, EOR, and UTZ, and the instructions explain what each one means. The form also asks for the dates when construction began and when the facility was placed in service.
Line 7 asks for the total metric tons of carbon oxide captured during the tax year. Keep the measurement records that support that figure.
Industrial, electricity, and direct air capture facilities
Section 2 of Part I asks three things. Does the facility make electricity? Is it a direct air capture facility? What kind of industrial facility is it? The answers decide which lines apply next. A direct air capture facility skips several industrial lines.
Section 2 also asks whether the facility processes carbon dioxide from underground deposits. The instructions explain the limits that apply to gas from certain natural sources. Read those limits before you answer those lines.
Partnerships and owners
A partnership with a valid section 761(a) election does not complete the form. Each partner does, in a way that matches its share of the credit. For this purpose, the partner counts as the taxpayer.
A taxpayer whose only source of the credit is a pass-through entity, other than a partnership with a valid section 761(a) election, may report the credit directly on the Part III line the instructions name.
Labor and apprenticeship rules
The instructions cover the prevailing wage and apprenticeship rules. If the labor hour rules apply, the taxpayer attaches a statement to Form 8933. The instructions list what it must include. Form 7220 covers prevailing wage and apprenticeship verification and corrections.
Elections and the credit amount
Part I also asks for the taxpayer's elections. An election affects how the credit is claimed, so check the instructions before you choose one. The credit rates and dollar amounts are set by the statute and adjusted for inflation each year. The instructions publish the current figures.
Before you file
Check that the facility details in Part I match the registration and the measurements. A gap between the metric tons on line 7 and the supporting records is the kind of issue that leads to questions later. Use the instructions for the year you are filing.
Mistakes to avoid
- Leaving out the registration number when an elective payment or transfer election is made.
- Mixing up the facility type codes. GEO, EOR, and UTZ describe different uses.
- Filing a partnership form when a valid section 761(a) election means each partner files its own.
- Skipping the apprenticeship statement when the labor hour rules apply.
The credit is part of the general business credit. For how business credits are combined, see Form 3800: How Business Credits Are Combined. For another energy-related credit, see Form 8835: The Renewable Electricity Production Credit.
Keep the facility records, the metric ton measurements, and the apprenticeship records with the return. The instructions are long, so read the part that matches your facility before you complete Part I.
Sources: Sources: IRS, Form 8933, Carbon Oxide Sequestration Credit (Rev. December 2025) (https://www.irs.gov/pub/irs-pdf/f8933.pdf); Instructions for Form 8933 (Rev. December 2025) (https://www.irs.gov/pub/irs-pdf/i8933.pdf) This is general information, not advice about your specific return.
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