How To Figure — Instruction 8933 — Instructions to Form

Subject to the section 45Q(f)(3)(B) election (discussed later), section 45Q(a)(1) allows a credit of $20 per metric ton of qualified carbon oxide captured by you using equipment that’s (1) originally placed in service at a facility before February 9, 2018, (2) disposed of by you in secure geological storage, and (3) not used by you as a tertiary injectant in an enhanced oil recovery (EOR) or natural gas recovery project or utilized by you in a manner described in section 45Q(f)(5).

Section 45Q(a)(2) allows a credit of $10 per metric ton of qualified carbon oxide (1) captured by you using equipment that’s originally placed in service at a facility before February 9, 2018; and (2) either (a) used by you as

Instructions for Form 8933 (Rev. 12-2025) Catalog Number 74390F Jan 7, 2026 Department of the Treasury Internal Revenue Service www.irs.gov

a tertiary injectant in an EOR or natural gas recovery project and disposed of by you in secure geological storage, or (b) utilized by you in a manner described in section 45Q(f)(5).

Section 45Q(a)(3) allows a credit of the applicable dollar amount (as determined under section 45Q(b)(1)) per metric ton of qualified carbon oxide (1) captured by you using equipment that’s originally placed in service at a facility on or after February 9, 2018, during the 12-year period beginning on the date the equipment was originally placed in service, (2) disposed of by you in secure geological storage, and (3) neither used as a tertiary injectant in an EOR or natural gas recovery project nor utilized in a manner described in section 45Q(f)(5).

Section 45Q(a)(3) allows a credit of the applicable dollar amount (as determined under section 45Q(b)(1)) (a) used by you as a tertiary injectant in an EOR or natural gas recovery project and disposed of by you in secure geological storage, or (b) utilized in a manner described in section 45Q(f)(5).

For purposes of determining the credit, you may elect under section 45Q(b)(3) to have the dollar amounts applicable under section 45Q(a)(1) or (2) apply instead of the dollar amounts applicable under section 45Q(a)(3) or (4) for each metric ton of qualified carbon oxide that’s captured by you using equipment that’s originally placed in service at a facility on or after February 9, 2018.

For the purpose of calculating the credit, a metric ton of carbon oxide includes only the contained weight of the carbon oxide. The weight of any other substances, such as water or impurities, isn’t included in the calculation.

2025 inflation adjusted credit rates and applicable dollar amounts. If you elect under section 45Q(b)(3) to apply the $10 and $20 rates, the credit rates for Part III are increased by the adjustment for inflation. The rates are as follows.

For any tax year after 2022, the section 45Q(b)(1)(B) applicable dollar amounts for DAC facilities for Part III are as follows.

$36 per metric ton for line 1g.
$26 per metric ton for lines 2g and 3i. Facilities or any equipment installed at a facility and placed in service after 2022 that satisfy certain requirements may claim an increased credit amount. See Increased Credit Amount for Facilities and Equipment and

the specific instructions for lines 1g, 2g, and 3i, later.

Form 8933, with all required schedules and statements.
Form 3800, General Business Credit.
Form 990-T, Exempt Organization Business Income Tax Return, or other applicable income tax return.

For a discussion of who is considered an applicable entity, see Applicable entity making an EPE on IRA 2022 credits in the Instructions for Form 3800. For more information on EPEs under section 6417, see Elective Payment of Certain Business Credits Under Section 6417 or Section 48D in the Instructions for Form 3800.

Amount captured by additional carbon capture equipment on qualified facility. For a qualified facility placed in service before February 9, 2018, for which additional carbon capture equipment is placed in service on or after February 9, 2018, the amount of qualified carbon oxide that’s captured by you is the following.

For purposes of sections 45Q(a)(1)(A) and (2)(A), equal to the lesser of (a) the total amount of qualified carbon oxide captured at such facility for the tax year, or (b) the total amount of the carbon dioxide capture capacity of the carbon capture equipment in service at such facility on the day before February 9, 2018.
For purposes of sections 45Q(a)(3)(A) and (4)(A), an amount (not less than zero) equal to the excess of (a) the total amount of qualified carbon oxide captured at such facility for the tax year, over (b) the total amount of the carbon dioxide capture capacity of the carbon capture equipment in service at such facility on the day before February 9, 2018.

Applicable entities. Applicable entities as defined under section 6417(d)(1)(A) that generally don’t benefit from income tax credits can elect to treat the credit for a facility or equipment installed in a facility and placed in service after 2022 as a payment of income tax. Resulting overpayments may result in refunds.

Applicable entities making the elective payment election (EPE) for the credit must file the following.

$28.43 per metric ton for line 1g.
$14.21 per metric ton for lines 2g and 3i. See Notice 2025-25, 2025-20 I.R.B. 1445, available at IRS.gov/irb/2025-20_IRB#NOT-2025-25 .

For any tax year after 2016, the section 45Q(b)(1)(A) (as in effect before August 16, 2022) applicable dollar amounts for Part III are established by linear interpolation between $22.66 and $50, and $12.83 and $35, respectively. The applicable dollar amounts for Part III are as follows.

$46.96 per metric ton for line 1g.
$32.54 per metric ton for lines 2g and 3i. See Notice 2018-93, 2018-51 I.R.B. 1041, available at IRS.gov/irb/2018-51_IRB#NOT-2018-93 .

If you’re an applicable entity, your election to treat the credit as a payment generally applies to 2025 and any subsequent year during the 12-year period described in section 45Q(a)(3)(A) or (4)(A) for such equipment. You must obtain an IRS-issued registration number for the equipment in 2025 and each of the succeeding years.

For any tax year after 2022, and before July 5, 2025, the section 45Q(b)(1)(A) applicable dollar amounts for Part III are as follows.

$17 per metric ton for line 1g.
$12 per metric ton for lines 2g and 3i. After July 4, 2025, the section 45Q(b)(1)(A) applicable dollar amount for Part III is $17 per metric ton for lines 1g, 2g, and 3i. For tax year 2026, the applicable dollar amount is $17 multiplied by an inflation adjustment factor.

Taxpayers electing to be treated as applicable enti- ties. If you aren’t an applicable entity, you can also elect to treat the credit as a payment of taxes on your return. Section 6417(d)(1)(C) allows an electing taxpayer, including a partnership and an S corporation under section 6417(c), to treat the credit for a facility or equipment installed in a facility and placed in service after 2022 as a payment or deemed payment of taxes.

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

For a discussion of who is considered an electing taxpayer, see the Instructions for Form 3800. For more information on EPEs under section 6417, see Elective Payment of Certain Business Credits Under Section 6417 or Section 48D in the Instructions for Form 3800.

If you make a section 6417(d)(1)(C) election, the election generally applies to 2025 and the 4 succeeding years (unless you revoke your election).

Caution: If you’re a partnership or an S corporation that elected to treat the credit for a new facility or equipment as a payment of taxes, you must report the total credit amount on Form 3800. See the specific instructions for line 9 of Part III.

Credit transfers. Under section 6418, eligible taxpayers, partnerships, and S corporations can elect to transfer all or part of the credit for a new or existing facility or equipment to an unrelated third party in exchange for cash. For more information on credit transfers, see Transfer of Eligible Credits Under Section 6418 in the Instructions for Form 3800.

Caution: If you’re a partnership or an S corporation electing to transfer the credit (or portion thereof), you must report the total credit amount on Form 3800. See the specific instructions for line 9 of Part III.

Pre-filing registration requirement for payments or transfers. Before you file your tax return, if you intend to make an EPE or transfer election on Form 3800 for the credit figured in Part III, you must complete a pre-filing registration for each facility. To register, go to IRS.gov/ Register for elective payment or transfer of credits . See Pub. 5884, Inflation Reduction Act (IRA) and CHIPS Act of 2022 (CHIPS) Pre-Filing Registration Tool. Also see Registering for and Making Elective Payment and Transfer Elections in the Instructions for Form 3800.