[Federal Register Volume 63, Number 62 (Wednesday, April 1, 1998)]
[Notices]
[Page 15917]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-8554]


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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 1998

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Publication of inflation adjustment factor and reference prices 
for calendar year 1998 as required by section 45(d)(2)(A) (26 U.S.C. 
45(d)(2)(A)).

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SUMMARY: The 1998 inflation adjustment factor and reference prices are 
used in determining the availability of the renewable electricity 
production credit under section 45(a).

DATES: The 1998 inflation adjustment factor and reference prices apply 
to calendar year 1998 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 1998 is 1.1240.

REFERENCE PRICES: The reference prices for calendar year 1998 are 
4.95 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 1997 
there were no sales of electricity generated from closed-loop biomass 
energy resources under contracts entered into after December 31, 1989.
    Because the 1998 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 1998.

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 1998 under 
section 45(a) is 1.7 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. 98-8554 Filed 3-31-98; 8:45 am]
BILLING CODE 4830-01-U