At EarthShift Global, we help organizations understand whether 45Q is the right pathway, prepare 45Q-ready LCAs, conduct independent critical reviews, and navigate the review and submission process with confidence.
How EarthShift Global Supports Your 45Q Journey
1. 45Q Readiness & Scoping Assessment
If this is the first time you will be submitting for the 45Q tax credit, we start with a focused readiness and scoping exercise to determine whether your project is positioned to benefit from 45Q.
This step helps answer:
Is your project likely eligible under Section 45Q?
Do you have sufficient data to support a compliant Life Cycle Assessment?
What system boundaries, pathways, and assumptions will matter most?
Are there potential risks that could affect approval or credit value?
This early assessment helps avoid unnecessary effort and expenses, and ensures that any LCA work is targeted, efficient, and decision-relevant.
2. 45Q-Compliant Life Cycle Assessment
If your project is ready, we develop a custom Life Cycle Assessment tailored specifically to Section 45Q requirements.
Our LCA will:
Align with current IRS and DOE guidance for 45Q
Follow ISO 14040/14044 Life Cycle Assessment principles and documentation expectations
Capture full lifecycle greenhouse gas emissions, including relevant indirect emissions
Clearly document assumptions, data sources, and methodological choices
The result is an LCA that is technically rigorous, transparent, and structured to support IRS review.
3. Independent Review & Critical Review Support
Section 45Q requires independent third-party verification or review of the Life Cycle Assessment.
We support this process in two ways:
If we perform the LCA: we help you identify and coordinate with an appropriate independent reviewer
If another party performs the LCA: we can serve as the independent critical reviewer, providing an objective, ISO-aligned assessment of the study
Our review approach focuses on clarity, defensibility, and alignment with regulatory expectations.
4. Submission Support & Next Steps
Once the Life Cycle Assessment and review are complete, we help prepare LCA materials[MR1] for submission to the IRS and Department of Energy, ensuring:
Documentation is complete and internally consistent
Supporting materials are clearly organized
Technical decisions are explained in a way that supports efficient review
45Q Frequently Asked Questions
Not every project is immediately ready for a 45Q Life Cycle Assessment. You may be ready if:
Your project pathway (capture, utilization, or storage) is defined
Key process data is available or can be reasonably estimated
You are early enough in development to adjust design decisions if needed
If data is limited or the project is still evolving, a readiness and scoping assessment can help determine when a 45Q-focused Life Cycle Assessment makes sense and what steps to take next.
Section 45Q is available to organizations that capture qualified carbon oxides and either store them securely or use them in approved utilization pathways, subject to IRS requirements.
Eligible projects typically include:
Industrial facilities capturing carbon dioxide or carbon monoxide
Power generation facilities with carbon capture systems
Direct air capture (DAC) projects
Carbon utilization projects that convert captured carbon into fuels, chemicals, materials, or other products
Eligibility depends on several factors, including:
The type of carbon capture technology and pathway used
When the carbon capture equipment was placed in service
How the captured carbon is transported, used, or stored
Whether lifecycle greenhouse gas emissions reductions can be demonstrated
Because eligibility is performance-based, a Life Cycle Assessment is required to evaluate whether a specific project meets 45Q requirements and to support the credit claim. If eligibility is unclear, a readiness and scoping assessment can help determine whether Section 45Q is a viable pathway and what additional information may be needed.
The term “lifecycle greenhouse gas emissions” means the aggregate quantity of greenhouse gas emissions (including direct emissions and significant indirect emissions such as significant emissions from land use changes) related to the full product lifecycle, including all stages of product and feedstock production and distribution, from feedstock generation or extraction through the distribution and delivery and use of the finished product to the ultimate consumer, where the mass values for all greenhouse gases are adjusted to account for their relative global warming potential according to Table A-1 of 40 CFR Part 98 subpart A. The amount of lifecycle greenhouse gas emissions measured by a lifecycle greenhouse gas analysis (LCA) is expressed in carbon dioxide equivalents (CO2-e).
To claim the Section 45Q credit, taxpayers must file IRS Form 8933 and submit supporting documentation, including an approved Life Cycle Assessment, for review by the IRS and the DOE.
We support clients by preparing the technical Life Cycle Assessment and related documentation needed to accompany the submission.
Section 45Q is a performance-based credit. The IRS requires a Life Cycle Assessment to demonstrate that carbon capture, utilization, or storage results in net greenhouse gas reductions when evaluated across the full lifecycle.
The LCA provides the technical basis for determining whether a project qualifies and how the credit is calculated.
Yes. In many cases, engaging early is beneficial. A 45Q-informed Life Cycle Assessment can:
Identify data gaps before they become barriers
Inform design and technology choices
Reduce risk later in the review and submission process
Yes. EarthShift Global can support you every step of the way – from early project scoping through the technical analyses required for a 45Q submission – with two important technical clarifications:
We can perform the Life Cycle Assessment (LCA) and help identify and coordinate with an independent critical reviewer, OR we can provide independent critical review for an LCA that has already been completed. Because critical review must be conducted by a third party independent of the LCA practitioner, we cannot perform both roles for the same study.
While we support the technical work, analysis, and coordination, the final 45Q paperwork and submission must be completed by the project owner or applicant.
Once the LCA and independent critical review are finalized, the project owner/commissioner (not EarthShift Global) must submit the required technical documentation to the DOE as part of the 45Q review process. This typically includes:
The final Life Cycle Assessment (LCA) report
The independent critical review report
Supporting methodological documentation and assumptions
Any additional materials requested by DOE to verify eligibility
After DOE review and approval, the project owner uses this determination when filing for the 45Q tax credit with the IRS. Approval timelines vary, but a well-structured, transparent LCA can help streamline the review process.
The first step is typically a 45Q readiness and scoping discussion. This allows us to understand your project, assess where you are in the process, and recommend the most efficient path forward.
Contact us to discuss your project and next steps.
