[Federal Register Volume 75, Number 62 (Thursday, April 1, 2010)]
[Notices]
[Page 16576]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-7263]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service


Credit for Renewable Electricity Production, Refined Coal 
Production, and Indian Coal Production, and Publication of Inflation 
Adjustment Factors and Reference Prices for Calendar Year 2010

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Publication of inflation adjustment factors and reference 
prices for calendar year 2010 as required by section 45(e)(2)(A) of the 
Internal Revenue Code (26 U.S.C. 45(e)(2)(A)), section 45(e)(8)(C) (26 
U.S.C. 45(e)(8)(C)), and section 45(e)(10)(C) (26 U.S.C. 45(e)(10)(C)).

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SUMMARY: The 2010 inflation adjustment factors and reference prices are 
used in determining the availability of the credit for renewable 
electricity production, refined coal production, and Indian coal 
production under section 45.

DATES: The 2010 inflation adjustment factors and reference prices apply 
to calendar year 2010 sales of kilowatt hours of electricity produced 
in the United States or a possession thereof from qualified energy 
resources, and to 2010 sales of refined coal and Indian coal produced 
in the United States or a possession thereof.
    Inflation Adjustment Factors: The inflation adjustment factor for 
calendar year 2010 for qualified energy resources and refined coal is 
1.4342. The inflation adjustment factor for Indian coal is 1.0976.
    Reference Prices: The reference price for calendar year 2010 for 
facilities producing electricity from wind is 4.22 cents per kilowatt 
hour. The reference prices for fuel used as feedstock within the 
meaning of section 45(c)(7)(A) (relating to refined coal production) 
are $31.90 per ton for calendar year 2002 and $54.74 per ton for 
calendar year 2010. The reference prices for facilities producing 
electricity from closed-loop biomass, open-loop biomass, geothermal 
energy, solar energy, small irrigation power, municipal solid waste, 
qualified hydropower production, marine and hydrokinetic renewable 
energy have not been determined for calendar year 2010.
    Because the 2010 reference price for electricity produced from wind 
does 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 such electricity sold during calendar year 2010. Because the 2010 
reference price of fuel used as feedstock for refined coal does not 
exceed the $31.90 reference price of such fuel in 2002 multiplied by 
the inflation adjustment factor and 1.7, the phaseout of credit 
provided in section 45(e)(8)(B) does not apply to refined coal sold 
during calendar year 2010. Further, for electricity produced from 
closed-loop biomass, open-loop biomass, geothermal energy, solar 
energy, small irrigation power, municipal solid waste, qualified 
hydropower production, marine and hydrokinetic renewable energy, the 
phaseout of credit provided in section 45(b)(1) does not apply to such 
electricity sold during calendar year 2010.
    Credit Amount by Qualified Energy Resource and Facility, Refined 
Coal, and Indian Coal: As required by section 45(b)(2), the 1.5-cent 
amount in section 45(a)(1), the 8-cent amount in section 45(b)(1), and 
the $4.375 amount in section 45(e)(8)(A) and the $2.00 amount in 
section 45(e)(8)(D), are each 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 cent, such amount is rounded to the nearest multiple 
of 0.1 cent. In the case of electricity produced in open-loop biomass 
facilities, small irrigation power facilities, landfill gas facilities, 
trash combustion facilities, and qualified hydropower facilities, 
section 45(b)(4)(A) requires the amount in effect under section 
45(a)(1) (before rounding to the nearest 0.1 cent) to be reduced by 
one-half. Under the calculation required by section 45(b)(2), the 
credit for renewable electricity production for calendar year 2010 
under section 45(a) is 2.15 cents per kilowatt hour on the sale of 
electricity produced from the qualified energy resources of wind, 
closed-loop biomass, geothermal energy, and solar energy, and 1.1 cent 
per kilowatt hour on the sale of electricity produced in open-loop 
biomass facilities, small irrigation power facilities, landfill gas 
facilities, trash combustion facilities, qualified hydropower 
facilities, marine and hydrokinetic renewable energy facilities. Under 
the calculation required by section 45(b)(2), the credit for refined 
coal production for calendar year 2010 under section 45(e)(8)(A) is 
$6.27 per ton on the sale of qualified refined coal. The credit for 
steel industry fuel is $2.87 per barrel-of-oil equivalent of steel 
industry fuel sold. The credit for Indian coal production for calendar 
year 2010 under section 45(e)(10)(B) is $2.2 per ton on the sale of 
Indian coal.

FOR FURTHER INFORMATION CONTACT: Philip Tiegerman, IRS, CC:PSI:6, 1111 
Constitution Ave., NW., Washington, DC 20224, (202) 622-3110 (not a 
toll-free call).

    Dated: March 25, 2010.
Christopher T. Kelley,
Special Counsel (Passthroughs & Special Industries).
[FR Doc. 2010-7263 Filed 3-31-10; 8:45 am]
BILLING CODE 4830-01-P