This article comes from law firm Foley & Lardner LLP and is authored by Kurt R. Rempe.
The IRS has recently 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 ¢/kWh for 2017 (up from 2.3¢ 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 ¢/kWh.
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.
A full copy of the notice is available here.