[Federal Register Volume 75, Number 62 (Thursday, April 1, 2010)]
[Notices]
[Page 16576]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-7263]
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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 2010
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Publication of inflation adjustment factors and reference
prices for calendar year 2010 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 2010 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 2010 inflation adjustment factors and reference prices apply
to calendar year 2010 sales of kilowatt hours of electricity produced
in the United States or a possession thereof from qualified energy
resources, and to 2010 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 2010 for qualified energy resources and refined coal is
1.4342. The inflation adjustment factor for Indian coal is 1.0976.
Reference Prices: The reference price for calendar year 2010 for
facilities producing electricity from wind is 4.22 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 $54.74 per ton for
calendar year 2010. 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, marine and hydrokinetic renewable
energy have not been determined for calendar year 2010.
Because the 2010 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 2010. Because the 2010
reference price of fuel used as feedstock for refined coal 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 2010. Further, for electricity produced from
closed-loop biomass, open-loop biomass, geothermal energy, solar
energy, small irrigation power, municipal solid waste, qualified
hydropower production, 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 2010.
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), and
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, and qualified hydropower 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 2010
under section 45(a) is 2.15 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 cent
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, marine and hydrokinetic renewable energy facilities. Under
the calculation required by section 45(b)(2), the credit for refined
coal production for calendar year 2010 under section 45(e)(8)(A) is
$6.27 per ton on the sale of qualified refined coal. The credit for
steel industry fuel is $2.87 per barrel-of-oil equivalent of steel
industry fuel sold. The credit for Indian coal production for calendar
year 2010 under section 45(e)(10)(B) is $2.2 per ton on the sale of
Indian coal.
FOR FURTHER INFORMATION CONTACT: Philip Tiegerman, IRS, CC:PSI:6, 1111
Constitution Ave., NW., Washington, DC 20224, (202) 622-3110 (not a
toll-free call).
Dated: March 25, 2010.
Christopher T. Kelley,
Special Counsel (Passthroughs & Special Industries).
[FR Doc. 2010-7263 Filed 3-31-10; 8:45 am]
BILLING CODE 4830-01-P