IRS Form 8933 (Schedule B) – In the realm of environmental sustainability and tax incentives, the IRS offers credits to encourage carbon capture and storage initiatives. One key component is the Carbon Oxide Sequestration Credit under Section 45Q of the Internal Revenue Code. For operators involved in secure geological disposal of captured carbon oxide, IRS Form 8933 Schedule B plays a crucial role. This schedule, known as the Disposal Operator Certification, ensures compliance and verification for claiming the credit. In this SEO-optimized guide, we’ll explore what Schedule B is, who needs to file it, how to complete it, and essential requirements—drawing from official IRS sources for accuracy and reliability.
What Is IRS Form 8933 Schedule B?
IRS Form 8933 is the primary document used to claim the Section 45Q Carbon Oxide Sequestration Credit, which rewards taxpayers for capturing and securely storing carbon oxide to reduce atmospheric emissions. Schedule B specifically focuses on the Disposal Operator Certification. It is designed for operators or designated operators of geological disposal sites where qualified carbon oxide has been injected for permanent storage, without involvement in enhanced oil or natural gas recovery (EOR).
The purpose of this schedule is to certify that the injected carbon oxide is disposed of in secure geological storage, preventing its escape into the atmosphere. This certification is vital for owners of the disposal site to claim the credit on their tax returns. Unlike other schedules—such as Schedule A for owners or Schedule C for EOR operators—Schedule B is tailored exclusively for non-EOR disposal operations. Recent updates to Form 8933, including revisions in December 2025, reflect ongoing IRS efforts to align with environmental regulations and tax policy changes, such as revocations of elections under Section 6417.
Who Needs to File Schedule B (Form 8933)?
You must file Schedule B if you are the operator or designated operator of a geological disposal site where captured qualified carbon oxide was injected during the tax year. This applies to sites focused on secure storage, not those using carbon oxide for EOR projects—if that’s the case, use Schedule C instead.
Key eligibility notes:
- Operators Only: This form is not for owners; they use Schedule A. However, operators must provide a copy of the completed Schedule B to each owner of the disposal site project.
- Pass-Through Entities: If an owner is a partnership, S corporation, or joint venture electing out of Subchapter K, report details about the entity itself, not individual partners or shareholders.
- Annual Requirement: Certifications are required each tax year, and failure to submit complete documentation on time disqualifies the credit for that year.
This schedule supports broader goals under Section 45Q, which incentivizes carbon capture technologies to combat climate change by ensuring verifiable sequestration.
Requirements for Secure Geological Storage
To qualify for the credit, the carbon oxide must be stored securely, complying with specific standards. The IRS mandates documentation proving no escape into the atmosphere, such as:
- Compliance with 40 CFR Part 98 Subpart RR (EPA greenhouse gas reporting rules).
- Adherence to CSA/ANSI ISO 27916:19 standards, certified by a qualified independent engineer or geologist.
Additionally:
- Report any contracts ensuring disposal, including parties involved, execution dates, metric tons disposed, and site identifiers (e.g., operator name, location, EPA e-GGRT ID).
- The amount of qualified carbon oxide is the lesser of what’s measured at capture and verified at disposal, unless proven otherwise to the IRS.
- If certified volumes are negative (indicating leakage), refer to recapture rules under Regulations Section 1.45Q-5.
For facilities placed in service before February 9, 2018, ensure EPA approval of a Monitoring, Reporting, and Verification (MRV) Plan.
How to Complete IRS Form 8933 Schedule B?
Completing Schedule B involves providing detailed information about the disposal site and its operations. While line-by-line specifics may vary by revision, here’s a high-level overview based on the December 2025 version:
- Owner Information: List each owner of the disposal site during the tax year, including names, addresses, and other identifiers. If there are multiple owners, attach a separate schedule.
- Site Details: Include the disposal site’s location (county, state), field, unit, reservoir, and any EPA IDs.
- Certification of Disposal: Certify the metric tons of carbon oxide injected and securely stored, along with emissions data.
- Contract Reporting: Detail all relevant contracts for carbon oxide disposal.
- Attachments: Include proof of secure storage compliance and any additional owner lists.
Attach Schedule B to Form 8933 and file it with your federal income tax return or Form 1065. For amended returns, certifications can be included, but must be within the statute of limitations.
Pro Tip for SEO and Compliance: Always consult the latest IRS instructions to avoid errors, as forms are updated periodically (e.g., the current revision is December 2025).
Filing Deadlines and Tips
- Due Date: Submit by the due date of your tax return, including extensions. Annual certifications must be timely for credit eligibility.
- Where to File: Electronically or by mail, as per IRS guidelines for Form 8933.
- Common Pitfalls: Incomplete documentation leads to credit denial. Ensure all attachments are included and copies are sent to owners.
- Recent Changes: As of April 2025, note updates on election revocations and short tax year filings.
For software support, many tax platforms like OLT.com support Schedule B for e-filing.
Download IRS Form 8933 Schedule B PDF
To get started, download the official PDF directly from the IRS website: IRS Form 8933 Schedule B (Disposal Operator Certification). This is the most current version (Rev. December 2025) for your reference.
Conclusion: Leveraging Schedule B for Carbon Sequestration Credits
IRS Form 8933 Schedule B is an essential tool for operators certifying secure carbon oxide disposal, enabling owners to claim valuable Section 45Q credits. By ensuring compliance with geological storage requirements, this form supports sustainable practices while providing tax benefits. Stay updated with IRS resources to maximize your eligibility. If you’re involved in carbon capture projects, consult a tax professional to navigate these complexities effectively.