Renewable electricity, refined coal production | KPMG | US
Share with your friends

Renewable electricity, refined coal production inflation factors, reference prices (2017)

Renewable electricity, refined coal production

The Treasury Department and IRS today released for publication in the Federal Register a notice that provides the 2017 inflation adjustment factors and reference prices used in determining the availability of the credit for renewable electricity production and refined coal production under section 45. For calendar year 2017, the credit period for Indian coal production has expired.


Related content

Credit rates

Today’s notice [PDF 166 KB] provides:

  • The 2017 credit rate for wind, closed-loop biomass and geothermal facilities claiming the renewable electricity production credit is 2.4 cents per kilowatt hour (up from 2.3 cents in 2016).
  • The 2017 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 2017 credit for rate for refined coal production is $6.909 per ton on the sale of refined coal.

Reference prices

  • The 2017 reference price for electricity produced from wind is 4.55 cents per kilowatt hour (up from 4.5 cents in 2016).
  • The reference prices for fuel used as feedstock within the meaning of section 45(c)(7)(A) (relating to refined coal production) are $31.90 per ton for calendar year 2002 and $51.09 per ton for calendar year 2017.
  • 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 2017.

Also, the credit for electricity produced from wind and the credit for refined coal are not phased out for 2017 because the reference prices do not exceed the beginning of the phaseout threshold.


Notice 2017-33 was released by the IRS in the Internal Revenue Bulletin 2017-22 [PDF 109 KB] dated Tuesday, May 30, 2017.

© 2018 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Request for proposal