IRS Form 8933 (Schedule E) – In the evolving landscape of environmental tax incentives, the IRS Form 8933 plays a pivotal role for businesses involved in carbon capture and sequestration. Specifically, Schedule E of Form 8933, known as the Election Certification, allows certain taxpayers to make strategic elections under section 45Q of the Internal Revenue Code. This form is essential for owners of carbon capture facilities looking to allocate credits to other parties involved in the sequestration process. Whether you’re a facility owner navigating tax credits for carbon oxide sequestration or seeking to optimize your environmental compliance strategy, understanding Schedule E can unlock significant benefits.
This comprehensive guide breaks down everything you need to know about IRS Form 8933 Schedule E, including its purpose, eligibility, filing requirements, and how to access it. We’ll draw from official IRS resources to ensure accuracy and relevance as of 2026.
What is IRS Form 8933 Schedule E?
IRS Form 8933 is the primary document used to claim the Carbon Oxide Sequestration Credit under section 45Q. This credit incentivizes the capture and secure storage of carbon oxide emissions to combat climate change. Schedule E, titled “Election Certification,” is a specific attachment to Form 8933 designed for making elections related to credit allocation.
Schedule E enables the owner of a carbon capture facility to elect under section 45Q(f)(3)(B) to transfer the credit to the person or entity that disposes of, uses in enhanced oil recovery (EOR), or utilizes the qualified carbon oxide. This election is particularly useful in scenarios where the capture facility owner supplies carbon oxide to third parties for geological storage, EOR projects, or other approved utilizations consistent with IRS guidelines.
The form was revised in December 2025, reflecting updates to ensure compliance with the latest tax laws and environmental standards. It’s part of a suite of schedules for Form 8933, each addressing different aspects of the sequestration process, such as disposal sites (Schedule A), operators (Schedule B), and utilization facilities (Schedule F).
Who Needs to File Schedule E (Form 8933)?
Not every taxpayer involved in carbon sequestration will use Schedule E. This schedule is specifically for:
- Owners of carbon capture facilities that supply qualified carbon oxide to another person or entity.
- Those electing to allow the sequestration credit to the party responsible for the actual disposal in secure geological storage, use in an EOR project, or utilization in a manner approved under section 45Q(f).
If you’re the capture facility owner and want to pass the credit to the disposer or utilizer, filing Schedule E is mandatory to certify this election. Partnerships, corporations, or individuals operating such facilities must evaluate their role in the carbon oxide chain to determine eligibility.
Importantly, this election must be made annually and cannot be revoked once filed for a given tax year. It’s separate for each facility, ensuring precise tracking and compliance.
The Purpose of the Election Certification
The core purpose of Schedule E is to facilitate the allocation of the section 45Q credit from the capturer to the sequencer or utilizer. This promotes collaboration in carbon management projects by allowing credits to flow to the entities performing the storage or utilization work.
Under section 45Q(f)(3)(B), the election certifies that the credit is being transferred, helping to avoid double-claiming and ensuring IRS oversight. This is crucial for large-scale projects involving multiple stakeholders, such as energy companies, industrial emitters, or environmental firms. By making this election, facility owners can support broader adoption of carbon capture technologies while maintaining tax efficiency.
How to Complete and File IRS Form 8933 Schedule E?
Filing Schedule E requires careful attention to detail. Here’s a step-by-step overview based on IRS instructions:
- Gather Required Information: Include the electing taxpayer’s name, address, taxpayer identification number (TIN), and the facility’s location and EPA e-GGRT ID number (if available).
- Indicate the Election: Clearly state on the form that an election is being made under section 45Q(f)(3)(B). Provide details about the credit claimant’s name, address, TIN, and their role (e.g., disposer in geological storage or EOR operator).
- Facility Details: List the capture facility’s name, address, e-GGRT ID, and a description of the qualified carbon oxide supplied.
- Credit Allocation: Specify the amount of qualified carbon oxide allocated and the credit amount being transferred.
- Attach to Form 8933: Schedule E must be attached to your Form 8933 and filed with your federal income tax return (e.g., Form 1040, 1120, or 1065) by the due date, including extensions.
The election is due no later than the tax return filing deadline for the year the credit arises. For partnerships, it’s filed with Form 1065. Always consult a tax professional for complex scenarios, as errors can lead to credit denial or penalties.
Key Requirements and Recent Updates
As of 2026, key requirements include annual elections and separate filings per facility. Recent IRS updates emphasize accurate reporting of facility IDs and carbon oxide amounts to align with environmental reporting standards.
Notable developments:
- Enhanced guidance on elective payment and transfer elections.
- Integration with EPA’s e-GGRT system for verification.
- Revocations of certain elections under section 6417 as announced in April 2025.
Stay compliant by reviewing the latest IRS publications for any inflation adjustments to credit rates or changes in qualified carbon oxide definitions.
Download IRS Form 8933 Schedule E
To get started, download the official PDF version of Schedule E (Form 8933) directly from the IRS website. The current revision is December 2025.
Download Schedule E (Form 8933) PDF
For the full Form 8933 and instructions, visit the IRS Forms and Publications page.
Conclusion
IRS Form 8933 Schedule E: Election Certification is a vital tool for taxpayers in the carbon sequestration space, enabling efficient credit allocation under section 45Q. By understanding its requirements and filing accurately, businesses can maximize tax incentives while contributing to sustainability goals. Always rely on official IRS sources and consider professional advice to navigate this complex area effectively.
For more details, explore the IRS website or consult the latest instructions for Form 8933. If you’re involved in carbon capture projects, filing Schedule E could be a game-changer for your tax strategy.