Tax News

CCH (cch.taxgroup.com) reports:

  The IRS has published the inflation adjustment factors and reference prices to be used in computing the renewable electricity production credit for calendar year 2008. The inflation adjustment factors and references prices apply to sales in calendar year 2008 of kilowatt hours of electricity produced in the United States or a U.S. possession from qualified energy resources.

  The inflation adjustment factor for calendar year 2008 is 1.3854 for qualified energy resources and refined coal, and 1.0591 for Indian coal. The reference price for calendar year 2008 is 3.60 cents per kilowatt hour for facilities producing electricity from wind. The reference price for fuel used as feedstock within the meaning of Code Sec. 45(c)(7)(A) is $45.56 per ton for calendar year 2008. The reference prices for facilities producing electricity from closed-loop biomass, open-loop biomass, geothermal energy, solar energy, small irrigation power, municipal solid waste and qualified hydropower production have not been determined for calendar year 2008.

  The amount of the credit for calendar year 2008 is 2.1 cents per kilowatt hour on sales of electricity produced from wind energy, closed-loop biomass, geothermal energy and solar energy, and 1.0 cent per kilowatt hour on sales of electricity produced from open-loop biomass, small irrigation power, landfill gas, trash combustion and qualified hydropower facilities. The credit for refined coal production is $6.061 per ton of qualified refined coal sold in 2008. The credit for Indian coal production is $1.589 per ton of Indian coal sold in 2008.

  The renewable electricity production credit is not subject to a phaseout under Code Sec. 45(b) for electricity sold during calendar year 2008. This is because the 2008 reference prices do not exceed the base amounts multiplied by the inflation adjustment factor.

Notice 2008-48, 2008FED ¶46,438

Other References:

 
Code Sec. 45

  CCH Reference - 2008FED ¶4415.25

  Tax Research Consultant

  CCH Reference - TRC BUSEXP: 54,550
CCH Reference - TRC BUSEXP: 54,554
CCH Reference - TRC BUSEXP: 54,554.05