[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