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09 May 2022

IRS corrects 2022 inflation adjustments for renewable energy production tax credits

The IRS has issued a correction (Notice 2022—09695) to its recently issued 2022 inflation adjustment facts and reference prices for the IRC Section 45 production tax credit (PTC) for qualified energy sources (Tax Alert 2022-0699).

The corrected inflation adjustment factor for calendar-year 2022 is 1.7593 (not 1.8012).

The corrected PTC for 2022 is:

  • 2.6 (not 2.7) cents per kilowatt hour on the sale of electricity produced from wind, closed-loop biomass, and geothermal energy
  • 1.3 (not 1.4) cents per kilowatt hour on the sale of electricity produced in open-loop biomass, landfill gas, trash, qualified hydropower, and marine and hydrokinetic facilities

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Contact Information
For additional information concerning this Alert, please contact:
 
Tax Credit Investment Advisory Services
   • Michael Bernier (michael.bernier@ey.com)
   • Dorian Hunt (dorian.hunt@ey.com)
   • Robbie Harvey (Robbie.harvey@ey.com)

Document ID: 2022-0741

 

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