Oil and gas, percentage depletion on marginal properties for 2021, reference price for 2020

IRS notices provide information for taxpayers involved in the oil and gas sector

IRS notices provide information for taxpayers involved in the oil and gas sector

The Internal Revenue Bulletin 2021-19 (dated May 10, 2021) includes the following IRS notices providing information for taxpayers involved in the oil and gas sector.

  • Notice 2021-30 provides under section 613A(c)(6)(C) that the applicable percentage for purposes of determining percentage depletion on marginal properties for calendar year 2021 is 15%.
  • Notice 2021-29 provides the reference price for use in determining the amount of the enhanced oil recovery credit under section 43; the marginal well production credit for qualified crude oil production under section 45I; and the applicable percentage under section 613A to be used in determining percentage depletion in the case of oil and natural gas produced from marginal properties for calendar year 2020. [The credit period for the nonconventional source production credit under section 45K ended on December 31, 2013, for facilities producing coke or coke gas (other than from petroleum-based products).]  The reference price under section 45K(d)(2)(C) for calendar year 2020 is $37.07. This reference price was previously announced by the IRS and Treasury Department. Read TaxNewsFlash

Read the IRS notices in IRB-2021-19 [PDF 852 MB]

 

 

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