[Federal Register Volume 81, Number 83 (Friday, April 29, 2016)]
[Notices]
[Page 25760]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-10065]
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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 2016
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Publication of inflation adjustment factor and reference prices
for calendar year 2016 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 2016 inflation adjustment factor and reference prices are
used in determining the availability of the credit for renewable
electricity production and refined coal production and Indian coal
production under section 45.
DATES: The 2016 inflation adjustment factor and reference prices apply
to calendar year 2016 sales of kilowatt hours of electricity produced
in the United States or a possession thereof from qualified energy
resources and to 2016 sales of refined coal and Indian coal produced in
the United States or a possession thereof.
Inflation Adjustment Factor: The inflation adjustment factor for
calendar year 2016 for qualified energy resources and refined coal is
1.5556. The inflation adjustment factor for Indian coal is 1.1934.
Reference Prices: The reference price for calendar year 2016 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 $53.74 per ton for
calendar year 2016. 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 2016.
Phaseout Calculation: Because the 2016 reference price for
electricity produced from wind (4.50 cents per kilowatt hour) does not
exceed 8 cents multiplied by the inflation adjustment factor (1.5556),
the phaseout of the credit provided in section 45(b)(1) does not apply
to such electricity sold during calendar year 2016. Because the 2016
reference price of fuel used as feedstock for refined coal ($53.74)
does not exceed $84.38 (which is the $31.90 reference price of such
fuel in 2002 multiplied by the inflation adjustment factor (1.5556) 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 2016. 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 2016.
Credit Amount by Qualified Energy Resource and Facility and 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), 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 2016 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 2016 under section 45(e)(8)(A) is $6.810
per ton on the sale of qualified refined coal. The credit for Indian
coal production under section 45(e)(10)(B) is $2.387 per ton on the
sale of Indian coal.
FOR FURTHER INFORMATION CONTACT: Philip Tiegerman, 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. 2016-10065 Filed 4-28-16; 8:45 am]
BILLING CODE 4830-01-P