[Federal Register Volume 84, Number 109 (Thursday, June 6, 2019)]
[Notices]
[Pages 26508-26509]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-11810]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
Credit for Renewable Electricity Production and Refined Coal
Production, and Publication of Inflation Adjustment Factor and
Reference Prices for Calendar Year 2019
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Notice.
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SUMMARY: The 2019 inflation adjustment factor and reference prices are
used in determining the availability of the credit for renewable
electricity production and refined coal production under section 45. As
of October 2, 2018, the credit period for small irrigation power
electricity production expired.
FOR FURTHER INFORMATION CONTACT: Martha M. Garcia, CC:PSI:6, Internal
Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224,
(202) 317-6853 (not a toll-free number).
SUPPLEMENTARY INFORMATION: Publication of inflation adjustment factor
and reference prices for calendar year 2019 as required by sections
45(e)(2)(A) (26 U.S.C. 45(e)(2)(A)) and 45(e)(8)(C) (26 U.S.C.
45(e)(8)(C)) of the Internal Revenue Code.
The 2019 inflation adjustment factor and reference prices apply to
calendar year 2019 sales of kilowatt hours of electricity produced in
the United States or a possession thereof from qualified energy
resources and to 2019 sales of refined coal produced in the United
States or a possession thereof.
Inflation Adjustment Factor: The inflation adjustment factor for
calendar year 2019 for qualified energy resources and refined coal is
1.6396.
Reference Prices: The reference price for calendar year 2019 for
facilities producing electricity from wind is 5.18 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 $49.23 per ton for
calendar year 2019. The reference prices for facilities producing
electricity from closed-loop biomass, open-loop biomass, geothermal
energy, municipal solid waste, qualified hydropower production, and
marine and hydrokinetic renewable energy have not been determined for
calendar year 2019.
Phaseout Calculation: Because the 2019 reference price for
electricity produced from wind (5.18 cents per kilowatt hour) does not
exceed 8 cents multiplied by the inflation adjustment factor (1.6396),
the phaseout of the credit provided in section 45(b)(1) does not apply
to such electricity sold during calendar year 2019. Because the 2019
reference price of fuel used as feedstock for refined coal ($49.23)
does not exceed $88.92 (which is the $31.90 reference price of such
fuel in 2002 multiplied by the inflation adjustment factor (1.6396) and
1.7), the phaseout of the credit provided in section 45(e)(8)(B) does
not apply to refined coal sold during calendar year 2019. Further, for
electricity produced from closed-loop biomass, open-loop biomass,
geothermal energy, municipal solid waste, qualified hydropower
production, and marine and hydrokinetic renewable energy, the phaseout
of the credit provided in section 45(b)(1) does not apply to such
electricity sold during calendar year 2019.
Credit Amount by Qualified Energy Resource and Facility and Refined
Coal: As required by section 45(b)(2), the 1.5 cent amount in section
45(a)(1) and the $4.375 amount in section 45(e)(8)(A) 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, landfill gas
facilities, trash 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 2019 under section
45(a) is 2.5 cents per kilowatt hour on the sale of electricity
produced from the qualified energy
[[Page 26509]]
resources of wind, closed-loop biomass, and geothermal energy, and 1.2
cents per kilowatt hour on the sale of electricity produced in open-
loop biomass facilities, landfill gas facilities, trash 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 2019 under
section 45(e)(8)(A) is $7.173 per ton on the sale of qualified refined
coal.
Christopher T. Kelley,
Special Counsel (Passthroughs and Special Industries).
[FR Doc. 2019-11810 Filed 6-5-19; 8:45 am]
BILLING CODE 4830-01-P