April 24, 2017

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IRS Releases 2017 Production Tax Credit Amounts

The IRS just published its annual notice that provides the inflation adjustment factors and reference prices used in determining the amount of the section 45 production tax credit (PTC) for the production of renewable energy and refined coal.

The credit for the production of renewable energy from wind, closed-loop biomass and geothermal facilities is 2.4 cents per kilowatt hour for 2017 (up from 2.3 cents in 2016). The credit for the production of renewable energy from open-loop biomass, small irrigation power, landfill gas, trash, qualified hydropower, and marine and hydrokinetic facilities remains at 1.2 cents per kilowatt hour. The credit for the production of refined coal is $6.909 per ton for 2017 (up from $6.810 in 2016). The credit for the production of Indian coal has expired for calendar year 2017. No phase-outs apply to the credits for these energy resources in 2017.

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About this Author

Kurt R. Rempe, Foley Lardner, Energy, Tax Lawyer, Pipeline Industry

Kurt Rempe is an associate and business lawyer with Foley & Larder LLP where he focuses on energy and tax law. His experience includes representing clients in tax equity investments in renewable energy projects; and regulatory matters related to the electric, natural gas and oil pipeline industry. Mr. Rempe has electric experience in transmission service and interconnection agreements, power purchase agreements, open access requirements, market-based rates, qualifying facility certification, reliability rules, sales and acquisitions of electric generation assets,...