[Federal Register Volume 80, Number 72 (Wednesday, April 15, 2015)]
[Notices]
[Pages 20295-20296]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-08650]


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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 2015

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Publication of inflation adjustment factor and reference prices 
for calendar year 2015 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.

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SUMMARY: The 2015 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 2015, the credit period for Indian coal production 
has expired.

[[Page 20296]]


DATES: The 2015 inflation adjustment factor and reference prices apply 
to calendar year 2015 sales of kilowatt hours of electricity produced 
in the United States or a possession thereof from qualified energy 
resources and to 2015 sales of refined coal produced in the United 
States or a possession thereof.
    Inflation Adjustment Factor: The inflation adjustment factor for 
calendar year 2015 for qualified energy resources and refined coal is 
1.5336.
    Reference Prices: The reference price for calendar year 2015 for 
facilities producing electricity from wind is 4.50 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 $57.64 per ton for 
calendar year 2015. The reference prices for facilities producing 
electricity from closed-loop biomass, open-loop biomass, geothermal 
energy, solar energy, small irrigation power, municipal solid waste, 
qualified hydropower production, and marine and hydrokinetic renewable 
energy have not been determined for calendar year 2015.
    Phaseout Calculation: Because the 2015 reference price for 
electricity produced from wind (4.50 cents per kilowatt hour) does not 
exceed 8 cents multiplied by the inflation adjustment factor (1.5336), 
the phaseout of the credit provided in section 45(b)(1) does not apply 
to such electricity sold during calendar year 2015. Because the 2015 
reference price of fuel used as feedstock for refined coal ($57.64) 
does not exceed $83.17 (which is the $31.90 reference price of such 
fuel in 2002 multiplied by the inflation adjustment factor (1.5336) 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 2015. Further, for 
electricity produced from closed-loop biomass, open-loop biomass, 
geothermal energy, solar 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 2015.
    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), the 8 cent amount in section 45(b)(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 2015 under section 45(a) is 2.3 cents per 
kilowatt hour on the sale of electricity produced from the qualified 
energy resources of wind, closed-loop biomass, geothermal energy, and 
solar 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 2015 under section 
45(e)(8)(A) is $6.710 per ton on the sale of qualified refined coal.

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).

 Christopher T. Kelley,
 Special Counsel to the Associate Chief Counsel (Passthroughs and 
Special Industries).
[FR Doc. 2015-08650 Filed 4-14-15; 8:45 am]
 BILLING CODE 4830-01-P