Recapture

A recapture event occurs when qualified carbon oxide for which a credit has been claimed ceases to be captured, disposed of, or used as a tertiary injectant during the recapture period. Recapture events are determined separately for each project involving capture, disposal, or use of qualified carbon oxide as a tertiary injectant.

Qualified carbon oxide ceases to be captured, disposed of, or used as a tertiary injectant if the leaked amount of qualified carbon oxide in the tax year exceeds the amount of qualified carbon oxide disposed of in secure geological storage or used as a tertiary injectant in that same tax year.

If a recapture event occurs during a project’s recapture period and you have claimed a credit for that project, you must report the following information on Schedule D (Form 8933), Recapture Certification, filed with your federal income tax return or Form 1065 for the tax year for which the recapture event occurred.

• The statutory credit rate at which the credits were originally calculated; and

• The recapture amount (as defined in Regulations section 1.45Q-5(e));

• The quantity of leaked qualified carbon oxide (in metric tons) (as defined in Regulations section 1.45Q-5(c));

• A statement that describes how you became aware of the recapture event, how the leaked amount was

Instructions for Form 8933 (Rev. 12-2025) 7

determined, and the identity and involvement of any regulatory agencies.