12 February 2016 Service determines Section 45 Indian coal credit for 2015 The Service announced in Notice 2016-11, that the Section 45 renewable electricity production credit for 2015 for Indian Coal is 2.354 per ton. The credit period for Indian coal production expired for calendar year 2015, but was renewed through 2016 by the Consolidated Appropriations Act of 2016. Prior to its renewal, Section 45 provided a credit for the production of Indian coal that a qualified facility sold to an unrelated third party from January 1, 2006, through December 31, 2014. The credit could be carried back one year and forward 20 years, and could not be claimed against the alternative minimum tax. The Consolidated Appropriations Act of 2016: (1) extends the Section 45 credit for the production of Indian coal through December 31, 2016; (2) permits facilities placed in service after December 31, 2008, to qualify for the credit; (3) permits related-party sales to qualify for the credit if the Indian coal is subsequently sold to an unrelated third party; and (4) allows the credit to be claimed against the AMT. See Alert 2015-2441.
Document ID: 2016-0319 | |||||||
