In the realm of tax credits for environmental sustainability, the IRS Form 8933 plays a pivotal role in claiming the Carbon Oxide Sequestration Credit under Section 45Q. Specifically, Schedule A of Form 8933 focuses on the Disposal or Enhanced Oil Recovery (EOR) Owner Certification, allowing eligible owners to certify their activities related to carbon oxide storage and utilization. This article breaks down everything you need to know about IRS Form 8933 Schedule A, including its purpose, filing requirements, and step-by-step guidance on completion. Whether you’re an owner of a geological disposal site or an EOR project, understanding this form can help maximize your tax benefits while ensuring compliance with IRS regulations.
What Is IRS Form 8933 Schedule A?
IRS Form 8933 is used to claim the Section 45Q credit for carbon oxide sequestration, which incentivizes the capture and secure storage of carbon dioxide and other carbon oxides to reduce greenhouse gas emissions. Schedule A, titled “Disposal or Enhanced Oil Recovery Owner Certification,” is a supplementary schedule attached to Form 8933. It serves as a certification tool for owners of geological disposal sites or EOR projects where qualified carbon oxide is injected and stored.
The primary goal of Schedule A is to verify the amounts of qualified carbon oxide received, stored, or utilized as a tertiary injectant in EOR processes. This certification ensures that the credit is only claimed for carbon oxide that meets secure geological storage standards, as defined under Section 45Q. By filing this schedule, owners attest to the accuracy of the sequestration activities and any binding contracts with suppliers.
Key aspects include:
- Reporting metric tons of qualified and nonqualified carbon oxide.
- Confirming compliance with environmental and contractual obligations.
- Allowing for the allocation of credits if suppliers elect to pass them on to owners.
This form is particularly relevant for industries involved in carbon capture and storage (CCS) technologies, oil and gas operations, and renewable energy initiatives aiming for net-zero emissions.
Who Needs to File IRS Form 8933 Schedule A?
Not every taxpayer claiming the Section 45Q credit will need Schedule A. It is specifically required if you are the owner (or one of the owners) of:
- A geological disposal site where captured qualified carbon oxide is injected for secure storage.
- An Enhanced Oil Recovery (EOR) project that utilizes carbon oxide as a tertiary injectant to enhance oil production while sequestering the carbon.
A separate Schedule A must be completed for each supplier of qualified carbon oxide. This ensures detailed tracking and certification per source. If you are also the supplier (i.e., your EIN matches the supplier’s), certain attestations may simplify the process. However, if suppliers are different entities, a binding written contract must exist to guarantee secure storage.
Exemptions or alternatives:
- Operators (rather than owners) of disposal sites use Schedule B (Form 8933) instead.
- For EOR projects, operators file Schedule C (Form 8933).
- If a supplier elects to allow you to claim the credit, attach Schedule E (Form 8933) to document the election.
Filing is mandatory for tax years where injection occurs, and the form must align with figures reported by project operators on related schedules.
Step-by-Step Guide: How to Fill Out IRS Form 8933 Schedule A
Completing Schedule A requires careful attention to detail to avoid errors that could delay your credit claim. The form is divided into two main parts. Here’s a breakdown based on the latest IRS guidelines (revised December 2025):
Part I: Information About You, the Owner
- Enter your name, Employer Identification Number (EIN), and full address.
- This section identifies you as the certifying owner and links the schedule to your main Form 8933.
Part II: Information About Your Suppliers of Qualified Carbon Oxide
This is the core of the form, where you provide details for each supplier:
- Supplier’s name, EIN, and the name/location (county and state) of the capture facility.
- Type of industrial facility (e.g., power plant, chemical production).
- Check the box if you are also the supplier (EINs must match).
- If not the supplier, attest (Yes/No) to the existence of a binding written contract ensuring secure geological storage under Section 45Q.
- Provide the date of the contract or its most recent amendment (MM/DD/YYYY).
- Report metric tons:
- Line 11: Qualified carbon oxide received during the tax year.
- Line 12: Qualified carbon oxide stored or utilized in EOR.
- Line 13: Nonqualified carbon oxide received.
- Line 14: Nonqualified carbon oxide stored or utilized.
- Line 15: Total carbon oxide injected (sum of lines 11 and 13).
- Line 16: Total carbon oxide stored (sum of lines 12 and 14).
- These amounts must match those reported by the operator on Schedule B or C.
- If the supplier elects to allocate the credit to you, check the box and attach Schedule E.
Tips for accuracy:
- Use precise metric ton measurements, as discrepancies can trigger IRS audits.
- Ensure all contracts are up-to-date and compliant with Section 45Q requirements.
- Attach the schedule to your tax return and retain copies for records.
For the Paperwork Reduction Act Notice and additional guidance, refer to the Instructions for Form 8933.
Key Requirements and Certifications for Compliance
To qualify for the Section 45Q credit via Schedule A:
- Carbon oxide must be captured from an industrial source and securely stored to prevent atmospheric release.
- Binding contracts are essential for third-party suppliers, outlining responsibilities for sequestration.
- Credits can be claimed for direct air capture or industrial capture, with rates varying based on storage method (e.g., higher for saline storage vs. EOR).
- In cases of credit allocation, the election must be documented properly to avoid double-claiming.
Noncompliance, such as inaccurate reporting or lack of contracts, can result in credit denial or penalties. Always consult a tax professional for complex scenarios, especially with multiple owners or suppliers.
Where to Download IRS Form 8933 Schedule A?
You can download the latest version of Schedule A (Form 8933) directly from the IRS website. The PDF is available here: https://www.irs.gov/pub/irs-pdf/f8933sa.pdf. Make sure to use the most recent revision (December 2025) to align with current tax year requirements.
Final Thoughts on Maximizing Your Section 45Q Credit
IRS Form 8933 Schedule A is a crucial component for owners in the carbon sequestration space, enabling certification of disposal and EOR activities to claim valuable tax credits. By properly documenting your operations and ensuring alignment with IRS standards, you can contribute to environmental goals while optimizing your tax position. Stay updated on any legislative changes via IRS.gov, as Section 45Q continues to evolve with climate policy advancements. If you’re new to this, reviewing the full instructions or seeking expert advice is recommended to navigate the complexities effectively.