26 U.S. Code § 45I - Credit for producing oil and gas from marginal wells
In the case of any taxable year beginning in a calendar year after 2005, each of the dollar amounts contained in subparagraph (A) shall be increased to an amount equal to such dollar amount multiplied by the inflation adjustment factor for such calendar year (determined under section 43(b)(3)(B) by substituting “2004” for “1990”).
Crude oil or natural gas produced during any taxable year from any well shall not be treated as qualified crude oil production or qualified natural gas production to the extent production from the well during the taxable year exceeds 1,095 barrels or barrel-of-oil equivalents (as defined in section 45K(d)(5)).
In the case of a qualified marginal well in which there is more than one owner of operating interests in the well and the crude oil or natural gas production exceeds the limitation under subsection (c)(2), qualifying crude oil production or qualifying natural gas production attributable to the taxpayer shall be determined on the basis of the ratio which taxpayer’s revenue interest in the production bears to the aggregate of the revenue interests of all operating interest owners in the production.
Any credit under this section may be claimed only on production which is attributable to the holder of an operating interest.
2005—Subsec. (a)(2). Pub. L. 109–135 substituted “qualified crude oil production” for “qualified credit oil production”.
Subsec. (b)(2)(C)(i). Pub. L. 109–58, § 1322(a)(3)(B), substituted “section 45K(d)(2)(C)” for “section 29(d)(2)(C)”.
Subsec. (c)(2)(A). Pub. L. 109–58, § 1322(a)(3)(D)(i), substituted “section 45K(d)(5))” for “section 29(d)(5))”.
Subsec. (d)(3). Pub. L. 109–58, § 1322(a)(3)(D)(ii), substituted “section 45K” for “section 29” in two places.
Amendment by Pub. L. 109–58 applicable to credits determined under the Internal Revenue Code of 1986 for taxable years ending after Dec. 31, 2005, see section 1322(c)(1) of Pub. L. 109–58, set out as a note under section 45K of this title.
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