IRS releases 2021 section 45 production tax credit amounts
April 30, 2021
IRS releases 2021 section 45 production tax credit amountsApril 30, 2021 The Internal Revenue Service (IRS) recently published a notice providing the inflation-adjustment factors and reference prices to be used in the calculation of renewable energy production tax credits under Internal Revenue Code (IRC) section 45 for 2021. That guidance provides the following:
Background IRC section 45 statutorily allows a renewable energy production credit for any taxable year of 1.5 cents per kWh produced by a taxpayer from wind or closed-loop biomass and sold to an unrelated person during the 10-year period beginning on the date on which the facility is originally placed in service. The credit amount is reduced by one-half for electricity produced from open-loop biomass, landfill gas, trash, qualified hydropower, and marine and hydrokinetic resources. IRC section 45 also statutorily allows a refined coal production credit of $4.375 per ton of qualified refined coal produced by a taxpayer and sold to an unrelated person during the 10-year period beginning on the date in which the facility is originally placed in service. IRC section 45 provides that the 1.5 cent amount and $4.375 amount are to be adjusted annually for inflation. Impact of IRS guidance This IRS guidance provides the inflation-adjusted amounts of production credits available for sales of electricity or refined coal during 2021. For 2021, the statutory 1.5 cent credit for electricity generation remained at 2.5 cents (and 1.3 cents for technologies entitled to one-half of the credit amount), and the statutory $4.375 credit for refined coal is increased to $7.384. _____ If you have any questions about this legal alert, please feel free to contact any of the attorneys listed under 'Related People/Contributors' or the Eversheds Sutherland attorney with whom you regularly work. Latest Insights
Latest News
Latest Events
Events And Training Immigration UK Business – sponsor licencing course April 23, 2024 09:30am - 11:30am (BST) Virtual, United Kingdom Events And Training Current developments in employment law April 24, 2024 9.30am - 11.30am (BST) Virtual Events And Training Building supply chain resilience in the technology industry April 30, 2024 11:00am – 12:30pm BST | 12:00pm – 13:30pm CET Events And Training Introduction to Spanish employment law May 07, 2024 2pm - 5pm (BST) Virtual |