82 FR 17740 - Credit for Renewable Electricity Production and Refined Coal Production, and Publication of Inflation Adjustment Factor and Reference Prices for Calendar Year 2017

DEPARTMENT OF THE TREASURY
Internal Revenue Service

Federal Register Volume 82, Issue 69 (April 12, 2017)

The 2017 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. For calendar year 2017, the credit period for Indian coal production has expired.

[Federal Register Volume 82, Number 69 (Wednesday, April 12, 2017)]
[Notices]
[Page 17740]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-07493]


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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 2017

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Publication of inflation adjustment factor and reference prices 
for calendar year 2017.

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SUMMARY: The 2017 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. 
For calendar year 2017, the credit period for Indian coal production 
has expired.

DATES: The 2017 inflation adjustment factor and reference prices apply 
to calendar year 2017 sales of kilowatt hours of electricity produced 
in the United States or a possession thereof from qualified energy 
resources and to 2017 sales of refined coal produced in the United 
States or a possession thereof.

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

SUPPLEMENTARY INFORMATION: Inflation adjustment factor and reference 
prices for calendar year 2017 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.
    Inflation Adjustment Factor: The inflation adjustment factor for 
calendar year 2017 for qualified energy resources and refined coal is 
1.5792.
    Reference Prices: The reference price for calendar year 2017 for 
facilities producing electricity from wind is 4.55 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 $51.09 per ton for 
calendar year 2017. The reference prices for facilities producing 
electricity from closed-loop biomass, open-loop biomass, geothermal 
energy, small irrigation power, municipal solid waste, qualified 
hydropower production, and marine and hydrokinetic renewable energy 
have not been determined for calendar year 2017.
    Phaseout Calculation: Because the 2017 reference price for 
electricity produced from wind (4.55 cents per kilowatt hour) does not 
exceed 8 cents multiplied by the inflation adjustment factor (1.5792), 
the phaseout of the credit provided in section 45(b)(1) does not apply 
to such electricity sold during calendar year 2017. Because the 2017 
reference price of fuel used as feedstock for refined coal ($51.09) 
does not exceed $85.64 (which is the $31.90 reference price of such 
fuel in 2002 multiplied by the inflation adjustment factor (1.5792) 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 2017. Further, for 
electricity produced from closed-loop biomass, open-loop biomass, 
geothermal energy, small irrigation power, 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 2017.
    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, small 
irrigation power 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 2017 under section 45(a) is 2.4 cents per kilowatt hour on the 
sale of electricity produced from the qualified energy resources of 
wind, closed-loop biomass, geothermal energy, and 1.2 cents per 
kilowatt hour on the sale of electricity produced in open-loop biomass 
facilities, small irrigation power 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 2017 under section 45(e)(8)(A) is $6.909 per ton on 
the sale of qualified refined coal.

Christopher T. Kelley,
Acting Deputy Associate Chief Counsel (Passthroughs and Special 
Industries).
[FR Doc. 2017-07493 Filed 4-11-17; 8:45 am]
 BILLING CODE 4830-01-P