Notice 2020-12, page 495.

Beginning of Construction for the Credit for Carbon Oxide Sequestration under Section 45Q. Notice 2020-12 provides guidance on the determination of when construction has begun on a qualified facility or on carbon capture equipment that may be eligible for the Section 45Q Credit. This notice provides two methods for taxpayers to establish the beginning of construction requirement (Physical Work Test and Five Percent Safe Harbor), a Continuity Requirement for both methods, guidance on transfers of ownership of a qualified facility or carbon capture equipment, and additional guidance applicable to the beginning of construction requirement.