[Federal Register Volume 79, Number 73 (Wednesday, April 16, 2014)]
[Notices]
[Pages 21514-21515]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-08582]


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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 2014

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Publication of inflation adjustment factors and reference 
prices for calendar year 2014 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 2014 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 2014 inflation adjustment factors and reference prices apply 
to calendar year 2014 sales of kilowatt hours of electricity produced 
in the United States or a possession thereof from qualified energy 
resources, and to 2014 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 2014 for qualified energy resources and refined coal is 
1.5088. The inflation adjustment factor for Indian coal is 1.1587.
    Reference Prices: The reference price for calendar year 2014 for 
facilities producing electricity from wind is 4.85 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 $56.88 per ton for 
calendar year 2014. 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, and marine and hydrokinetic renewable 
energy have not been determined for calendar year 2014.
    Because the 2014 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 2014. Because the 2014 
reference price of fuel used as feedstock for refined coal ($56.88) 
does not exceed $81.82 (which is the $31.90 reference price of such 
fuel in 2002 multiplied by the inflation adjustment factor (1.5088) and 
1.7), the phaseout of credit provided in section 45(e)(8)(B) does not 
apply to refined coal sold during calendar year 2014. Further, for 
electricity produced from closed-loop biomass, open-loop biomass, 
geothermal energy, solar energy, small irrigation power, municipal 
solid waste, qualified hydropower production, and 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 2014.
    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), the 
$4.375 amount in section 45(e)(8)(A), the $2.00 amount in section 
45(e)(8)(D), and the $2.00 amount in section 45(e)(8)(10)(B) 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, qualified hydropower facilities, and marine and 
hydrokinetic renewable energy 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 2014 under section 45(a) is 2.3 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 cents per kilowatt hour on the sale of 
electricity produced in open-loop biomass facilities, small irrigation 
power facilities, landfill gas facilities,

[[Page 21515]]

trash combustion facilities, qualified hydropower facilities, and 
marine and hydrokinetic renewable energy facilities. Under the 
calculation required by section 45(b)(2), the credit for refined coal 
production for calendar year 2014 under section 45(e)(8)(A) is $6.601 
per ton on the sale of qualified refined coal. The credit for Indian 
coal production for calendar year 2014 under section 45(e)(10)(B) is 
$2.317 per ton on the sale of Indian coal.

FOR FURTHER INFORMATION CONTACT: Philip Tiegerman, CC:PSI:6, Internal 
Revenue Service, 1111 Constitution Avenue NW., Washington, DC 20224, 
(202) 317-6853 (not a toll-free number).

Cornelia Schnyder,
Special Counsel to the Associate Chief, Counsel (Passthroughs and 
Special Industries).
[FR Doc. 2014-08582 Filed 4-15-14; 8:45 am]
BILLING CODE 4830-01-P