Renewable Electricity Production Credit, Publication of Inflation Adjustment Factor and Reference Prices for Calendar Year 1999

[Federal Register Volume 64, Number 84 (Monday, May 3, 1999)]
[Notices]
[Pages 23729-23730]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-10934]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service


Renewable Electricity Production Credit, Publication of Inflation 
Adjustment Factor and Reference Prices for Calendar Year 1999

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Publication of inflation adjustment factor and reference prices 
for calendar year 1999 as required by section 45(d)(2)(A) (26 U.S.C. 
45(d)(2)(A)).

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SUMMARY: The 1999 inflation adjustment factor and reference prices are 
used in determining the availability of the renewable electricity 
production credit under section 45(a).

DATES: The 1999 inflation adjustment factor and reference prices apply 
to calendar year 1999 sales of kilowatt hours of electricity produced 
in the United States or a possession thereof from qualified energy 
resources.

Inflation Adjustment Factor

    The inflation adjustment factor for calendar year 1999 is 1.1269.

Reference Prices

    The reference prices for calendar year 1999 are 4.836 cents per 
kilowatt hour for facilities producing electricity from wind and 
0 cents per kilowatt hour for facilities producing electricity from 
closed-loop biomass. The reference price for electricity produced from 
closed-loop biomass, as defined in section 45(c)(2), is based on a 
determination under section 45(d)(2)(C) that in calendar year 1998 
there were no sales of electricity generated from closed-loop biomass 
energy resources under contracts entered into after December 31, 1989.
    Because the 1999 reference prices for electricity produced from 
wind and closed-loop biomass energy resources do 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 electricity sold 
during calendar year 1999.

Credit Amount

    As required by section 45(b)(2), the 1.5 cents amount in section 
45(a)(1) is 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

[[Page 23730]]

preceding sentence is not a multiple of 0.1 cents, such amount is 
rounded to the nearest multiple of 0.1 cents. Under the calculation 
required by section 45(b)(2), the renewable electricity production 
credit for calendar year 1999 under section 45(a) is 1.7 cents per 
kilowatt hour on the sale of electricity produced from closed-loop 
biomass and wind energy resources.

FOR FURTHER INFORMATION CONTACT: David A. Selig, IRS, CC:DOM:P&SI:5, 
1111 Constitution Ave., NW, Washington, DC 20224, (202) 622-3040 (not a 
toll-free call).

    Dated: April 21, 1999.
Judith Dunn,
Associate Chief Counsel (Domestic).
[FR Doc. 99-10934 Filed 4-30-99; 8:45 am]
BILLING CODE 4830-01-P