[Federal Register Volume 59, Number 62 (Thursday, March 31, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-7575]


[[Page Unknown]]

[Federal Register: March 31, 1994]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

 

Renewable Electricity Production Credit, Publication of Inflation 
Adjustment Factor and Reference Prices for Calendar Year 1994

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Publication of inflation adjustment factor and reference prices 
for calendar year 1994 as required by section 45(d)(2)(A) (26 U.S.C. 
45(d)(2)(A)).

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SUMMARY: The 1994 inflation adjustment factor and reference prices are 
used in determining the availability of the renewable electricity 
production credit under section 45(a).

DATES: The 1994 inflation adjustment factor and reference prices apply 
to calendar year 1994 sales of kilowatt hours of electricity produced 
in the United States or a possession thereof from qualified energy 
resources.

INFLATION ADJUSTMENT FACTOR: The inflation adjustment factor for 
calendar year 1994 is 1.0273.

REFERENCE PRICE: The reference prices for calendar year 1994 are 
5.4 cents per kilowatt hour for facilities producing electricity from 
wind and 0 cents per kilowatt hour for facilities producing electricity 
from closed-loop biomass. The reference price for electricity produced 
from closed-loop biomass, as defined in section 45(c)(2), is based on a 
determination under section 45(d)(2)(C) that in calendar year 1993 
there were no sales of electricity generated from closed-loop biomass 
energy resources under contracts entered into after December 31, 1989.
    Because the 1994 reference prices for electricity produced from 
wind and closed-loop biomass energy resources do not exceed 8 cents 
multiplied by the inflation adjustment factor, the phaseout of the 
credit provided in section 45(b)(1) does not apply to electricity sold 
during calendar year 1994.

CREDIT AMOUNT: As required by section 45(b)(2), the 1.5 cents amount in 
section 45(a)(1) is adjusted by multiplying such amount by the 
inflation adjustment factor for the calendar year in which the sale 
occurs. If any amount as increased under the preceding sentence is not 
a multiple of 0.1 cents, such amount is rounded to the nearest multiple 
of 0.1 cents. Under the calculation required by section 45(b)(2), the 
renewable electricity production credit for calendar year 1994 under 
section 45(a) is 1.5 cents per kilowatt hour on the sale of electricity 
produced from closed-loop biomass and wind energy resources.

FOR FURTHER INFORMATION CONTACT: Jeffrey A. Erickson, Internal Revenue 
Service, CC:DOM:P&SI:5, 1111 Constitution Ave., NW., Washington, DC 
20224, (202) 622-3040 (not a toll-free call).
Marlene Gross,
Acting Associate Chief Counsel (Domestic).
[FR Doc. 94-7575 Filed 3-30-94; 8:45 am]
BILLING CODE 4830-01-U