In this release, the IRS announces the 2025 inflation factor for § 45Q carbon credits and the 2024 § 45K reference price impacting energy-related tax credits and deductions.
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INCOME TAX
Notice 2025-25, page 1445.
This notice publishes the inflation adjustment factor for the carbon oxide sequestration credit under § 45Q for calendar year 2025. The inflation adjustment factor is used to determine the amount of the credit allowable under § 45Q for taxpayers that make an election under § 45Q(b)(3) to have the dollar amounts applicable under § 45Q(a)(1) or (2) apply.
Notice 2025-26, page 1445.
This notice publishes the reference price under § 45K(d)(2) (C) of the Internal Revenue Code for calendar year 2024. The reference price applies in determining the amount of the enhanced oil recovery credit under § 43, the marginal well production credit under § 45I, and the percentage depletion in case of oil and natural gas produced from marginal properties under § 613A.