Notice 2020-34: Reference price, natural gas from marginal wells during 2019

Reference price, natural gas from marginal wells

IRS Notice 2020-34—included in the Internal Revenue Bulletin 2020-21 (dated May 18, 2020)—provides the applicable reference price for qual¬ified natural gas production from qualified marginal wells during tax years beginning in calendar year 2019 for the purpose of determining the marginal well production credit under section 45I.

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Notice 2020-34 provides the applicable reference price for tax years beginning in calendar year 2019 is $2.55 per 1,000 cubic feet.

Notice 2020-34 also provides the credit amount used for the purpose of determining the marginal well production credit. The credit amount for tax years beginning in cal­endar year 2019 is $0.08 per 1,000 cubic feet.

Notice 2020-34 is effective for qualified natural gas production during tax years beginning in calendar year 2019.

Read Notice 2020-34 in IRB 2020-21 [PDF 1.5 MB] 

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