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Carbon Credits

Tax Treatment of Carbon Credits

From what we understand carbon credits are to be treated as ordinary income, because the sale of carbon credits, by definition, is not the disposal of a capital asset.

If you are interested in learning more about carbon credits here are some useful links:

• Pickard Crop Services
• CO₂e.com FAQ
• National Carbon Offset Coalition, Inc.
• International Carbon Bank & Exchange
• Congressional Research Service Report for Congress - Global Climate Change: Market Based Strategies to Reduce Greenhouse Gases
• Chicago Climate Exchange
• Carbon Trading