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Renewable electricity, refined coal production inflation factors, reference prices (2019)

Renewable electricity, refined coal production

The U.S. Treasury Department and IRS today released for publication in the Federal Register a notice that provides the 2019 inflation adjustment factor and reference prices used in determining the availability of the credit for renewable electricity production and refined coal production under section 45.


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Credit rates

Today’s notice [PDF 192 KB] provides:

  • The 2019 credit rate for wind, closed-loop biomass and geothermal facilities claiming the renewable electricity production credit is 2.5 cents per kilowatt hour (up from 2.4 cents for 2018).
  • The 2019 credit rate for open-loop biomass, landfill gas, trash, qualified hydropower and marine and hydrokinetic facilities is unchanged at 1.2 cents per kilowatt hour.
  • The 2019 credit for rate for refined coal production is $7.173 per ton on the sale of refined coal (up from $7.03 per ton for 2018).

The notice states that as of October 2, 2018, the credit period for small irrigation power electricity production expired.

Reference prices

  • The inflation adjustment factor for 2019 for qualified energy resources and refined coal is 1.6396.
  • The 2019 reference price for electricity produced from wind is 5.18 cents per kilowatt hour (up from 4.85 cents in 2018).
  • The reference prices for fuel used as feed stock (relating to refined coal production) are $31.90 per ton for calendar year 2002 and $49.23 per ton for calendar year 2019 (slightly down from $49.69 per ton for calendar year 2018).
  • The reference prices for facilities producing electricity from closed-loop biomass, open-loop biomass, geothermal energy, small irrigation power, municipal solid waste, qualified hydropower production, and marine and hydrokinetic renewable energy have not been determined for calendar year 2019. Today’s notice further explains that the credit for electricity produced from wind and the credit for refined coal are not phased out for 2019 because the reference prices do not exceed the beginning of the phase-out threshold.

Notice 2019-41—published in the Internal Revenue Bulletin 2019-28 [PDF 17.6 MB]—provides the same information as provided in the June 2019 notice in the Federal Register.


For the 2018 factors and reference prices, read TaxNewsFlash.

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