Section 45 credit for renewable electricity, refined coal production - 2014 inflation adjustments, reference prices 

April 15: The Treasury Department and IRS today released for publication in the Federal Register a notice that provides the 2014 inflation adjustment factors and reference prices used in determining the availability of the credit for renewable electricity production, refined coal production, and Indian coal production under section 45.

The credits for 2014 in today’s notice [PDF 12 KB] are the same as those that applied for 2013.

  • Under the notice, the 2014 credit rate for electricity produced from wind, closed-loop biomass, geothermal energy, and solar energy is 2.3 cents per kilowatt hour (the same as for 2013).
  • For electricity produced from open-loop biomass facilities, small irrigation power facilities, landfill gas facilities, trash combustion facilities, and qualified hydropower facilities, the credit rate for 2014 is 1.1 cents (the same as for 2013).

As with 2013, the credit is not phased out for 2014 because the reference price does not exceed the beginning of the phaseout threshold.

©2014 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.

Direct comments, including requests for subscriptions, to
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.

Share this

Share this


Current and future KPMG clients may subscribe to TaxNewsFlash email alerts.

Email your contact information.

TaxNewsFlash-United States by year