[Federal Register Volume 62, Number 77 (Tuesday, April 22, 1997)]
[Notices]
[Page 19657]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-10412]


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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 1997

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Publication of inflation adjustment factor and reference prices 
for calendar year 1997 as required by section 45(d)(2)(A) (26 U.S.C. 
45(d)(2)(A)).

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SUMMARY: The 1997 inflation adjustment factor and reference prices are 
used in determining the availability of the renewable electricity 
production credit under section 45(a).

DATES: The 1997 inflation adjustment factor and reference prices apply 
to calendar year 1997 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 1997 is 1.0970.

Reference Prices

    The reference prices for calendar year 1997 are 6.4 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 1996 
there were no sales of electricity generated from closed-loop biomass 
energy resources under contracts entered into after December 31, 1989.
    Because the 1997 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 1997.

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 1997 under 
section 45(a) is 1.6 cents per kilowatt hour on the sale of electricity 
produced from closed-loop biomass and wind energy resources.

FOR FURTHER INFORMATION CONTACT: David A. Selig, IRS, CC:DOM:P&SI:5, 
1111 Constitution Ave., NW., Washington, D.C. 20224, (202) 622-3040 
(not a toll-free call).
Judith C. Dunn,
Associate Chief Counsel (Domestic).
[FR Doc. 97-10412 Filed 4-21-97; 8:45 am]
BILLING CODE 4830-01-U