Notice2022-07967

Credit for Renewable Electricity Production and Publication of Inflation Adjustment Factor and Reference Price for Calendar Year 2022

Primary source

Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.

Published
April 14, 2022

Issuing agencies

Treasury DepartmentInternal Revenue Service

Abstract

The 2022 inflation adjustment factor and reference price are used in determining the availability of the credit for renewable electricity production. For calendar year 2022, the credit period for refined coal production and Indian coal production expired.

Full Text

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<title>Federal Register, Volume 87 Issue 72 (Thursday, April 14, 2022)</title>
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[Federal Register Volume 87, Number 72 (Thursday, April 14, 2022)]
[Notices]
[Page 22286]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-07967]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service


Credit for Renewable Electricity Production and Publication of 
Inflation Adjustment Factor and Reference Price for Calendar Year 2022

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of publication.

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SUMMARY: The 2022 inflation adjustment factor and reference price are 
used in determining the availability of the credit for renewable 
electricity production. For calendar year 2022, the credit period for 
refined coal production and Indian coal production expired.

FOR FURTHER INFORMATION CONTACT: Charles Hyde, CC:PSI:6, Internal 
Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224, 
(202) 317-6853 (not a toll-free number).

SUPPLEMENTARY INFORMATION: The 2022 inflation adjustment factor and 
reference price apply to calendar year 2022 sales of kilowatt hours of 
electricity produced in the United States or a possession thereof from 
qualified energy resources.
    Inflation Adjustment Factor: The inflation adjustment factor for 
calendar year 2022 for qualified energy resources is 1.8012.
    Reference Price: The reference price for calendar year 2022 for 
facilities producing electricity from wind is 4.09 cents per kilowatt 
hour. The reference prices for facilities producing electricity from 
closed-loop biomass, open-loop biomass, geothermal energy, municipal 
solid waste, qualified hydropower production, and marine and 
hydrokinetic renewable energy have not been determined for calendar 
year 2022.
    Phaseout Calculation: Because the 2022 reference price for 
electricity produced from wind (4.09 cents per kilowatt hour) does not 
exceed 8 cents multiplied by the inflation adjustment factor (1.8012), 
the phaseout of the credit provided in section 45(b)(1) does not apply 
to such electricity sold during calendar year 2022. For electricity 
produced from closed-loop biomass, open-loop biomass, geothermal 
energy, 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 2022.
    Credit Amount by Qualified Energy Resource and Facility: As 
required by section 45(b)(2), the 1.5 cent amount in section 45(a)(1) 
is 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, 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 2022 under section 
45(a) is 2.7 cents per kilowatt hour on the sale of electricity 
produced from the qualified energy resources of wind, closed-loop 
biomass, and geothermal energy, and 1.4 cents per kilowatt hour on the 
sale of electricity produced in open-loop biomass facilities, landfill 
gas facilities, trash facilities, qualified hydropower facilities, and 
marine and hydrokinetic renewable energy facilities.

(Authority: 45(e)(2)(A) (26 U.S.C. 45(e)(2)(A)) of the Internal 
Revenue Code.)

Christopher T. Kelley,
Special Counsel to the Associate Chief Counsel, (Passthroughs and 
Special Industries).
[FR Doc. 2022-07967 Filed 4-13-22; 8:45 am]
BILLING CODE 4830-01-P


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Indexed from Federal Register on April 14, 2022.

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