Form 8933 Guide – 45Q Credit, 2025 Rates, Schedules A to F

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On a 45Q engagement, a single missed detail can put a large credit at risk while the clock runs. Form 8933 is the Carbon Oxide Sequestration Credit return under IRC §45Q, attached to the income tax return for the year the credit is claimed, and the December 2025 revision rebuilt how the substantiation flows.

For tax years beginning in 2025, base rates run from $17 to $46.96 per metric ton depending on placed-in-service date and DAC status, and the Prevailing Wage and Apprenticeship bonus multiplies the credit by 5.0x on lines 1i, 2i, and 3k. You attach the new Schedules A through F, utilization claims now need an approved LCA, and the total on line 9 flows to Form 3800, Part III, line 1x.

Key Takeaways

• Use Form 8933 to compute and substantiate the section 45Q credit by facility or capture equipment, one form per facility or unit, and complete Parts I–III. Attach the new Schedules A–F, which replace the old model certificates.
• For 2025, the inflation‑adjusted 45Q rates under 45Q(a)(1) and (a)(2) are 28.43 per metric ton for secure disposal, and 14.21 per metric ton for EOR or utilization, when you elect the 45Q(b)(3) path. Use these on lines 1g, 2g, and 3i if you made that election.
• For post‑2022 property under the IRA, the “applicable dollar amounts” start at 17 and 12 per ton, or 36 and 26 for DAC, and can be multiplied by 5 if you meet prevailing wage and apprenticeship or qualify via the construction timing safe harbor – but the 5x bonus is conditional on answering Yes to Part I line 33 and attaching Schedule A (Form 8933); it is not automatic, and without that affirmation the credit defaults to the base amount on lines 1h/2h/3j. This corresponds to the often quoted 85, 60, 180, and 130 outcomes. See Line 1i/2i/3k “Increased Credit Amount.”
• Elective payment under section 6417 still exists. On April 9, 2025, the IRS released instructions on how a taxpayer may revoke a previously made 6417 election for a property in a later year of the election period. This did not abolish 6417, it added a revocation procedure.
• Elective payment or transfer requires annual IRS pre‑filing registration through Energy Credits Online. Get a registration number for each applicable credit property, enter it on Form 8933 Part I line 1, and file it with your return.
• Utilization claims require an approved LCA package under Notice 2024‑60, with the DOE-approved displacement factor entered on Part III line 3g. No approval, no utilization credit.

What Form 8933 does, in plain English

Form 8933 is your worksheet and certification packet for the 45Q credit. You report qualified carbon oxide captured and either securely disposed of, used as a tertiary injectant with secure storage, or otherwise utilized. The form is organized by capture facility or capture equipment, which keeps your rates, tons, and elections clean by unit. Parts I–III hold the core details and calculations, and the new Schedules A–F document ownership, operator roles, utilization certifications, elections, and any recapture event.

If you plan to transfer the credit or use elective payment, you will also complete pre‑filing registration, include Form 3800, and attach the required statements with a valid IRS registration number for each property entered on Form 8933 Part I line 1, then file with your income tax return, for example, Form 1120, 1065, or 990‑T.

Who must file, including the special partnership wrinkle

• If you are the taxpayer entitled to the credit for a qualified facility or item of capture equipment, you file Form 8933, one per facility or unit.
• Partnerships with a valid section 761(a) election generally do not file the form at the entity level. Each partner is treated as the taxpayer and files its own Form 8933 in proportion to its undivided ownership interest, consistent with records and the election. The instructions explain exceptions tied to equipment placed in service after February 9, 2018, where only one person may claim the credit per single process train and others must use the 45Q(f)(3)(B) election.
• If your only source is a passthrough, the K-1 credit flows onto Form 8933 Part III line 8 and is added with any direct credit to compute line 9, which then carries to Form 3800, Part III, line 1x, unless you are in the 761(a) fact pattern above.

Quick expectation check for reviewers

In practice, the most common slowdowns I see are missing Section 1 identifiers, no evidence tying measured tons to the right process train, and schedules that do not match contracts. Set a review gate before you calculate lines 1g, 2g, and 3g, and make sure every role claimed on A, B, C, E, or F is supported by the underlying agreement. That habit alone trims days off the review cycle.

The new Schedules A–F, and when each one applies

The IRS replaced the old model certificates with Schedules A–F. Here is the clean way to think about them.

Schedule	Use it when you are…	What it certifies
A	Claiming the PWA increased credit, or receiving an elected credit under §45Q(f)(3)(B)	PWA compliance for lines 1i, 2i, 3k, or substantiation of credit elected to you
B	Claiming the disposal credit on Part III, line 1	Supporting documentation for the disposal credit (Part III line 1i)
C	Operator of an EOR project	Tertiary recovery injections and volumes
D	Anyone reporting recapture	Recapture amounts and the triggering event
E	Capture facility owner making the 45Q(f)(3)(B) election	Your election to allow another person to claim the credit (one Schedule E required per disposal site, recovery project, or utilization facility – a single consolidated Schedule E does not satisfy the per-site disclosure)
F	Owner of a utilization facility	Utilization certification and LCA linkage

Attach the schedules that match your role in the chain, then mirror those roles in your contracts and statements, so the file tells one consistent story.

2025 credit rates, applicable dollar amounts, and how to pick the right path

Here is the simple framework I use on every review.

1. Decide if you are using the 45Q(b)(3) “inflation‑adjusted legacy rates” for your post‑2018 equipment.

• For 2025, those rates are 28.43 per ton for secure disposal and 14.21 per ton for EOR/utilization. These show up on lines 1g, 2g, and 3i when you answer “Yes” to the 45Q(b)(3) election.

2. If you are not using 45Q(b)(3), use “applicable dollar amounts.”

• For post‑2022 property, the base amounts are 17 and 12 per ton, or 36 and 26 for DAC. These can be multiplied by 5 if you meet prevailing wage and apprenticeship (PWA) or qualify via the “began construction before January 29, 2023” rule. The 5x result matches the amounts many people quote, 85 and 60 per ton, or 180 and 130 for DAC. Enter the base amount on lines 1g, 2g, 3i, then reflect the increase on lines 1i, 2i, 3k.

3. If you are dealing with certain pre‑IRA placements, the instructions still reference the interpolated amounts that applied before August 16, 2022, for example 43.92 and 30.07 for the 2024 context. Keep those in mind when a project straddles old and new rules.

The decision tree is rate election first, then base amount, then the 5x increase if you qualify. Do not mix paths on the same tons.

PWA, the 5x increase, and the two routes to qualify

You can qualify for the five‑times increase one of two ways, and you only need one:

• Construction began before January 29, 2023, for the facility or for the equipment installed in the facility, with continuity satisfied, or
• You meet prevailing wage and apprenticeship on construction, and prevailing wage on certain alteration or repair. The IRS has a dedicated PWA page and FAQs, and the Form 8933 instructions explain exactly what you must attach when you claim the increased credit amount, including wage determinations and correction data when needed.

DAC specifics

Direct air capture uses the DAC‑specific base amounts of 36 and 26 per ton, which can also be multiplied by 5 if you qualify for the increased credit amount. Make sure your process train, measurement, and verification lines up with the DAC definitions in your documentation, since reviewers will check whether those DAC amounts are properly claimed on the right line.

Equipment timing, facility definitions, and allocation rules

Rates are only half the battle. You also have to classify equipment and allocate captured tons the right way.

• One unit equals a single process train, from capture through compression to transport. Keep your records organized by train, because that is how the credit is attributed post‑2018.
• If you added capture equipment to a pre‑2018 facility, you allocate the captured tons between baseline pre‑2/9/2018 capacity and the post‑2018 incremental capture. Do not over‑allocate to the higher‑value category without support.
• The measurement basis is the contained weight of the carbon oxide, measured at the verification point. Exclude impurities and water.

The lines that matter most in Part III

• Line 1g, 2g, 3i hold your per‑ton amount, either the inflation‑adjusted rate or the applicable dollar amount.
• Lines 1i, 2i, 3k capture the increased credit amount when you qualify for the 5x result.
• Line 10 is where recapture shows up, and you must attach Schedule D and report the recapture on Form 4255.

Utilization claims now require an approved LCA

If you are claiming utilization under 45Q(f)(5), you must submit an LCA report package that meets the new requirements and obtain approval before a utilization credit is determined for equipment placed in service on or after February 9, 2018. This is not optional, and it is now a critical review point for 2024–2025 filings. Build your timeline around the IRS and DOE review process, enter the DOE-approved displacement factor from the LCA acceptance letter on line 3g, and attach Schedule F (Form 8933) – both IRS LCA approval and DOE displacement-factor approval are mandatory before any utilization credit is computed.

Treat the LCA like a technical exhibit. The credit lives or dies on whether the package you submit meets the updated Notice 2024‑60 standard.

Elective payment vs transfer, registrations, and the 2025 revocation procedure

You have two ways to monetize 45Q if you cannot use the credit against income tax.

• Elective payment under section 6417, often called direct pay, generally for applicable entities.
• Transfer under section 6418 to an unrelated buyer for cash, subject to the transfer rules. The two are distinct mechanisms with different consequences – only one can apply to a given credit amount per facility per year, so the choice between direct pay and transfer is binary at the property level.

Both paths start with pre‑filing registration in IRS Energy Credits Online, one registration number per applicable credit property, renewed each year you claim. Enter those numbers on Form 8933 Part I line 1 and include the required statements with your return. Expect the IRS to reject incomplete packages, so capture the registration number early in your workflow.

On April 9, 2025, the IRS published a procedure describing how a taxpayer may revoke a previously made section 6417 election for a given applicable credit property in a later year of the election period. The key point, the IRS did not eliminate 6417. The guidance teaches you how to walk back a prior election and, if you wish, pivot to a transfer in later years, as long as you meet section 6418. If you choose to revoke, attach a PDF titled “Revocation of the Section 6417 Election” with the specific data points listed by the IRS.

What to attach when you claim the increased credit amount

If you claim the 5x increase, the instructions require a specific attachment with wage determinations, paid wages and hours by classification, and correction data if any, plus construction start and continuity details when you rely on the timing safe harbor. Build a standard template and reuse it, it saves reviewers hours.

A step‑by‑step filing workflow you can follow

• Map the project. Identify each qualified facility or capture equipment unit, the process train, and whether you will use 45Q(b)(3) or applicable dollar amounts.
• Pull your contracts. Line up the parties who will appear on Schedules A, B, C, E, and F. Make sure the contract roles match the schedule roles.
• Measure the tons. Tie your metering and verification to the right verification point and keep impurity adjustments visible.
• Decide on monetization. Elective payment or transfer, then start pre‑filing registration for each property so you do not bottleneck at filing.
• Prepare Form 8933 for each facility or unit. Complete Section 1 and Parts I–III, enter the correct per‑ton rate on lines 1g, 2g, 3i, and, if applicable, claim the increased credit amount on lines 1i, 2i, 3k.
• Attach the right schedules. Schedules A–F, plus Schedule D if recapture applies, and the PWA attachment if you took the 5x increase.
• Add Form 3800. Include the registration numbers and required statements, then file with your income tax return. Keep LCA approval documents with your utilization claim.

Documentation to keep in the audit file

• Construction start proof and continuity, or PWA records, to support the 5x increase.
• Metering logs, verification reports, and transport records tied to the process train.
• Operator certificates and owner attestations that match Schedules A–C and F.
• LCA submission and approval for utilization projects.
• Pre‑filing registration confirmations for each property and the numbers used on the return.

Common errors that trigger rework

• Mixing rate paths within one set of tons, for example, entering a 45Q(b)(3) rate on 1g and then also trying to pick up a 1i increase that only applies to applicable dollar amounts.
• Claiming a utilization credit without an approved LCA. Reviewers will set this aside until the approval is in hand.
• Missing or mismatched schedule roles versus contract roles, for example, listing the disposal operator on Schedule A instead of Schedule B.
• Omitting the IRS registration number when making a 6417 or 6418 election. The return will not process cleanly.

A simple pre‑filing checklist, rates picked, roles mapped, schedules drafted, registration in hand, prevents 80 percent of the back‑and‑forth.

Where Accountably fits, when it helps

If your internal team is buried in workpapers, a disciplined delivery structure matters more than headcount. Accountably integrates trained offshore teams into your workflow, inside your systems, to standardize workpapers, speed reviews, and keep roles and schedules consistent across engagements. Use that kind of structure when you need predictable turnaround on repeatable 8933 packages during peak season without burning out reviewers.

Quick reference, forms and guidance

• Form 8933 and the new Schedules A–F, plus instructions, Rev. December 2025.
• 2025 inflation‑adjusted 45Q rates, 28.43 and 14.21 per ton.
• Elective payment or transfer pre‑filing registration through IRS Energy Credits Online.
• Utilization LCA procedures and submission standards.

Final checklist you can copy

• Identify each facility or capture equipment unit, and pick your rate path.
• Confirm whether you will claim the 5x increased amount via PWA or the construction‑timing safe harbor, then prep the attachment.
• Prepare and cross‑check Schedules A–F against contracts.
• Register each property in Energy Credits Online, capture the numbers, and file Form 3800 with your return.
• For utilization, submit LCA and get approval before you claim.
• Keep metering, verification, construction, wage, and contract files together for audit readiness.

You can file Form 8933 with confidence when rates are correct, roles are documented, and schedules match your contracts. Slow down at setup, and your review time will shrink.

One last note on style and safety

This article reflects IRS guidance available as of November 10, 2025, including 2025 rate updates and April 9, 2025 changes on 6417 revocation. If you are handling a large or complex filing, have a licensed tax professional review your package before submission.

If you want a second pair of eyes on workpapers or need disciplined production support during peak season, our team at Accountably can plug into your tools and help you standardize Form 8933 packages without losing control of quality or timelines.

Common Mistakes We See Every Season

The same handful of errors drives most §45Q review notes I see, and almost all of them flow from one root cause: filers treating Form 8933 as a single-rate credit instead of a five-rate decision tree gated on placed-in-service date, DAC status, and the line 28 §45Q(b)(3) election.

Reusable Checklists

These three checklists are copy-paste ready for firm SOPs, and the page will persist your check state in browser storage as you work through them.

Keep 8933 Season From Stalling

Form 8933 work stalls for a different reason than 1040 or 941 packages do. The bottleneck is not seasonal capacity, it is the rate-decision chain. Each facility on a return has its own placed-in-service date, DAC vs. non-DAC status, line 28 §45Q(b)(3) election position, and PWA documentation track – and the December 2025 form revision carries five distinct rate regimes after the One Big Beautiful Bill Act drew a new boundary at July 5, 2025 (per IRS Form 8933 instructions, Rev. December 2025).

The fix is to push the rate decision and the substantiation chain upstream of the calculation. Build the facility data pack before opening Part III, lock the §45Q(b)(3) position on line 28 before computing line 1g, and gate the 5.0x PWA bonus on a written check of line 33 plus Schedule A plus the pathway-specific schedule. The Part III math then becomes deterministic instead of negotiable.

• Maintain a per-facility rate matrix that flags the correct line 1g, 2g, and 3i values across the five regimes (§45Q(b)(3) elected $28.43 and $14.21, pre-2023 $46.96 and $32.54, post-2022 non-DAC $17 and $12 pre-July 5 2025, the same $17 and $12 post-July 4 2025, and DAC post-2022 $36 and $26) so preparers stop guessing during peak weeks.
• Pre-register every facility on IRS Energy Credits Online and store the registration number in the data pack; without it, Part I line 1 cannot support a §45Q(f)(9) elective payment or §6418 transfer election.
• Treat the PWA 5.0x bonus as a four-document gate (line 33 Yes, Schedule A, pathway-specific Schedule B, C, or F, and the underlying compliance file) before any 5x multiplication touches lines 1i, 2i, or 3k.
• For utilization credits on Part III line 3, hold the displacement factor and LCA acceptance letter in the data pack so Schedule F has the underlying documents ready when line 3g is populated.
• Always compute both bond-reduction values (line 5b ratio and line 5c 15% cap) and document the smaller as line 5d before line 9 carries to Form 3800, Part III, line 1x.

That is the kind of structured production work our team at Accountably wires into U.S. tax delivery for clients running multi-facility §45Q programs – facility data packs, rate matrices, and PWA substantiation reviews built into the workpaper so the credit math survives review the first time.

FAQs

Is Form 8933 the same as Form 8833?

No. Form 8933 is for the section 45Q carbon oxide credit. Form 8833 is a treaty‑based return position disclosure for taxpayers claiming treaty benefits that override or modify U.S. law under sections 6114 or 7701(b). Different purpose, different audience.

Who must file Form 8933?

You file when you are the taxpayer entitled to the 45Q credit for a qualified facility or capture equipment. Partnerships with a valid section 761(a) election generally pass filing to the partners, who each file their own Form 8933 in line with undivided ownership.

What are the 2025 inflation‑adjusted rates if I elect 45Q(b)(3)?

Use 28.43 per ton on line 1g and 14.21 per ton on lines 2g and 3i. These rates apply when you elect 45Q(b)(3) for post‑2018 equipment.

How do the “applicable dollar amounts” work after 2022?

The base amounts are 17 and 12 per ton, or 36 and 26 for DAC. If you meet PWA or qualify via the construction‑timing safe harbor, and you answer Yes to Part I line 33 with Schedule A (Form 8933) attached, you multiply those by 5 and report the result on the “Increased Credit Amount” lines in Part III.

Do I need IRS pre‑filing registration for elective payment or transfer?

Yes. Use Energy Credits Online to register each property every year you claim. Enter the registration number on Form 8933, Part I, line 1, and attach the required statements with your return.

Did the IRS revoke 6417 in 2025?

No. On April 9, 2025, the IRS released instructions for how a taxpayer may revoke a prior 6417 election for a property in a later year, not a repeal of 6417.

What changed for utilization claims?

Notice 2024‑60 tightened procedures for LCA submissions and approvals. You need that approval before a utilization credit is determined for equipment placed in service on or after February 9, 2018.