[Federal Register Volume 78, Number 64 (Wednesday, April 3, 2013)]
[Notices]
[Pages 20176-20177]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-07773]


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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 2013

AGENCY: Internal Revenue Service (IRS), Treasury.

[[Page 20177]]


ACTION: Publication of inflation adjustment factors and reference 
prices for calendar year 2013 as required by section 45(e)(2)(A) of the 
Internal Revenue Code (26 U.S.C. 45(e)(2)(A)), section 45(e)(8)(C) (26 
U.S.C. 45(e)(8)(C)), and section 45(e)(10)(C) (26 U.S.C. 45(e)(10)(C)).

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SUMMARY: The 2013 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 2013 inflation adjustment factors and reference prices apply 
to calendar year 2013 sales of kilowatt hours of electricity produced 
in the United States or a possession thereof from qualified energy 
resources, and to 2013 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 2013 for qualified energy resources and refined coal is 
1.5063. The inflation adjustment factor for Indian coal is 1.1538.
    Reference Prices: The reference price for calendar year 2013 for 
facilities producing electricity from wind is 4.53 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 $58.23 per ton for 
calendar year 2013. 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 2013.
    Because the 2013 reference price for electricity produced from wind 
does 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 such electricity sold during calendar year 2013. Because the 2013 
reference price of fuel used as feedstock for refined coal ($58.23) 
does not exceed the $31.90 reference price of such fuel in 2002 
multiplied by the inflation adjustment factor and 1.7, the phaseout of 
credit provided in section 45(e)(8)(B) does not apply to refined coal 
sold during calendar year 2013. 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 credit provided in section 45(b)(1) does not apply to 
such electricity sold during calendar year 2013.
    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), the 8-cent amount in section 45(b)(1), the 
$4.375 amount in section 45(e)(8)(A), and the $2.00 amount in section 
45(e)(8)(D) 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 combustion 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 2013 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 1.1 cents per 
kilowatt hour on the sale of electricity produced in open-loop biomass 
facilities, small irrigation power facilities, landfill gas facilities, 
trash combustion 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 2013 under section 45(e)(8)(A) is $6.590 
per ton on the sale of qualified refined coal. The credit for Indian 
coal production for calendar year 2013 under section 45(e)(10)(B) is 
$2.308 per ton on the sale of Indian coal.

FOR FURTHER INFORMATION CONTACT: Martha Garcia, CC:PSI:6, Internal 
Revenue Service, 1111 Constitution Avenue NW., Washington, DC 20224, 
(202) 622-3110 (not a toll-free number).

Cornelia Schnyder,
Special Counsel to the Associate Chief Counsel (Passthroughs and 
Special Industries).
[FR Doc. 2013-07773 Filed 4-1-13; 11:15 am]
BILLING CODE 4830-01-P