[Federal Register Volume 85, Number 93 (Wednesday, May 13, 2020)]
[Notices]
[Pages 28698-28699]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-10273]
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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 2020
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Publication of inflation adjustment factors and reference
prices for calendar year 2020 under sections 45(e)(2)(A) (26 U.S.C.
45(e)(2)(A)), 45(e)(8)(C) (26 U.S.C. 45(e)(8)(C)), and 45(e)(10)(B) (26
U.S.C. 45(e)(10)(B)) of the Internal Revenue Code.
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SUMMARY: The 2020 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 2020 inflation adjustment factors and reference prices apply
to calendar year 2020 sales of kilowatt hours of electricity produced
in the United States or a possession thereof from qualified energy
resources, and to 2020 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 2020 for qualified energy resources and refined coal is
1.6687. The inflation adjustment factor for calendar year 2020 for
Indian coal is 1.2851.
Reference Prices: The reference price for calendar year 2020 for
facilities producing electricity from wind is 4.16 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 $48.58 per ton for
calendar year 2020. 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 2020.
Phaseout Calculation: Because the 2020 reference price for
electricity produced from wind (4.16 cents per kilowatt hour) does not
exceed 8 cents multiplied by the inflation adjustment factor (1.6687),
the phaseout of the credit provided in section 45(b)(1) does not apply
to such electricity sold during calendar year 2020. Because the 2020
reference price of fuel used as feedstock for refined coal ($48.58)
does not exceed $90.49 (which is the $31.90 reference price of such
fuel in 2002 multiplied by the inflation adjustment factor (1.6687) 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 2020. 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 2020.
[[Page 28699]]
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) 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 2020 under section 45(a) is 2.5 cents per kilowatt hour on the
sale of electricity produced from the qualified energy resources of
wind, closed-loop biomass, and geothermal energy, and 1.3 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 2020 under section
45(e)(8)(A) is $7.301 per ton on the sale of qualified refined coal. As
required by section 45(e)(10)(B)(ii), the $2.00 amount in section
45(e)(10)(B)(i) is adjusted by multiplying such amount by the inflation
adjustment factor for the calendar year. Under the calculation required
by section 45(e)(10)(B)(ii), the credit for Indian coal production for
calendar year 2020 under section 45(e)(10)(B) is $2.570 per ton on the
sale of Indian coal.
FOR FURTHER INFORMATION CONTACT: Charles Hyde, CC:PSI:6, Internal
Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224,
(202) 317-6853 (not a toll-free number).
Christopher T. Kelley,
Special Counsel to the Associate Chief Counsel (Passthroughs and
Special Industries).
[FR Doc. 2020-10273 Filed 5-12-20; 8:45 am]
BILLING CODE 4830-01-P