A July 2016 notice from the Treasury Department and IRS was published in the Federal Register to provide the oil reference price for the enhanced oil recovery credit. The July 2016 notice explained that given the oil reference price was dramatically lower than last year, the enhanced oil recovery credit would possibly be available in 2016 for the first time since 2005. Subsequently, the IRS issued Notice 2016-44 providing the enhanced oil recovery inflation adjustment factor.
In the Internal Revenue Bulletin [PDF 124 KB] released for August 22, 2016, the IRS included Announcement 2016-29 to correct Notice 2016-44 on the enhanced oil recovery inflation adjustment factor. Specifically, Announcement 2016-29 provides the following correction:
In the third paragraph, the calculation providing that $28 multiplied by 1.6464 = $46.01 is incorrect. The calculation should instead state that $28 multiplied by 1.6464 = $46.10.
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