Notice 2021-47

IRS__Notice_2021-47_on_Notice.pdf

Enhanced Oil Recovery Credit

Notice 2021-47

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IRS, Notice 2021-47 on Notice NOT-2021-47

Department of the Treasury
Internal Revenue Service
Notice
Notice 2021-47
Section 43(a) provides that for purposes of section 38 , the enhanced oil recovery credit for any taxable year is
an amount equal to 15 percent of the taxpayer's qualified enhanced oil recovery costs for such taxable year.
Section 43(b)(1) provides that the amount of the credit determined under subsection (a) for any taxable year
shall be reduced by an amount which bears the same ratio to the amount of such credit (determined without
regard to this paragraph) as — (A) the amount by which the reference price for the calendar year preceding the
calendar year in which the taxable year begins exceeds $28, bears to (B) $6.
Section 43(b)(3)(B) of the Internal Revenue Code requires the Secretary to publish an inflation adjustment
factor. The enhanced oil recovery credit under § 43 for any taxable year is reduced if the "reference price,"
determined under § 45K(d)(2)(C) , for the calendar year preceding the calendar year in which the taxable year
begins is greater than $28 multiplied by the inflation adjustment factor for that year.
The term "inflation adjustment factor" means, with respect to any calendar year, a fraction the numerator of
which is the GNP implicit price deflator for the preceding calendar year and the denominator of which is the
GNP implicit price deflator for 1990.
Because the reference price for the 2020 calendar year ($37.07) does not exceed $28 multiplied by the
inflation adjustment factor for the 2020 calendar year ($28 multiplied by 1.7849 = $49.9772), the enhanced oil
recovery credit for qualified costs paid or incurred in 2021 is determined without regard to the phase-out for
crude oil price increases.
Table 1 contains the GNP implicit price deflator used for the 2021 calendar year, as well as the previously
published GNP implicit price deflators used for the 1991 through 2020 calendar years.
Notice 2021-47 TABLE 1 GNP IMPLICIT PRICE DEFLATORS
Calendar Year

GNP Implicit Price Deflator

1990

112.9 (used for 1991)

1991

117.0 (used for 1992)

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IRS, Notice 2021-47 on Notice NOT-2021-47

Calendar Year

GNP Implicit Price Deflator

1992

120.9 (used for 1993)

1993

124.1 (used for 1994)

1994

126.0 (used for 1995)*

1995

107.5 (used for 1996)

1996

109.7 (used for 1997)**

1997

112.35 (used for 1998)

1998

112.64 (used for 1999)***

1999

104.59 (used for 2000)

2000

106.89 (used for 2001)

2001

109.31 (used for 2002)

2002

110.63 (used for 2003)

2003

105.67 (used for 2004)****

2004

108.23 (used for 2005)

2005

112.129 (used for 2006)

2006

116.036 (used for 2007)

2007

119.656 (used for 2008)

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IRS, Notice 2021-47 on Notice NOT-2021-47

Calendar Year

GNP Implicit Price Deflator

2008

122.407 (used for 2009)

2009

109.764 (used for 2010)*****

2010

110.654 (used for 2011)

2011

113.347 (used for 2012)******

2012

115.387 (used for 2013)

2013

106.710 (used for 2014)*******

2014

108.407 (used for 2015)********

2015

109.868 (used for 2016)

2016

111.528 (used for 2017)

2017

113.500 (used for 2018)

2018

110.308 (used for 2019)*********

2019

112.257 (used for 2020)

2020

113.586 (used for 2021)

* Beginning in 1995, the GNP implicit price deflator was rebased relative to 1992. The 1990 GNP implicit price
deflator used to compute the 1996 § 43 inflation adjustment factor is 93.6.
** Beginning in 1997, two digits follow the decimal point in the GNP implicit price deflator. The 1990 GNP price
deflator used to compute the 1998 § 43 inflation adjustment factor is 93.63.

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IRS, Notice 2021-47 on Notice NOT-2021-47

*** Beginning in 1999, the GNP implicit price deflator was rebased relative to 1996. The 1990 GNP implicit
price deflator used to compute the 2000 § 43 inflation adjustment factor is 86.53.
**** Beginning in 2003, the GNP implicit price deflator was rebased, and the 1990 GNP implicit price deflator
used to compute the 2004 § 43 inflation adjustment factor is 81.589.
***** Beginning in 2009, the GNP implicit price deflator was rebased, and the 1990 GNP implicit price deflator
used to compute the 2010 § 43 inflation adjustment factor is 72.199.
****** Beginning in 2011, the 1990 GNP implicit price deflator used to compute the 2012 § 43 inflation
adjustment factor is 72.260.
******* Beginning in 2013, the GNP implicit price deflator was rebased, and the 1990 GNP implicit price deflator
used to compute the 2014 § 43 inflation adjustment factor is 66.803.
******** Beginning in 2014, the 1990 GNP implicit price deflator used to compute the 2015 § 43 inflation
adjustment factor is 66.732.
********* Beginning in 2018, the 1990 GNP implicit price deflator used to compute the 2019 § 43 inflation
adjustment factor is 63.637.
Table 2 contains the inflation adjustment factor and the phase-out amount for taxable years beginning in the
2021 calendar year as well as the previously published inflation adjustment factors and phase-out amounts for
taxable years beginning in the 1991 through 2020 calendar years.
Notice 2021-47 TABLE 2 INFLATION ADJUSTMENT FACTORS AND PHASE-OUT AMOUNTS
Calendar Year

Inflation Adjustment Factor

Phase-out Amount

1991

1.0000

0

1992

1.0363

0

1993

1.0708

0

1994

1.0992

0

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IRS, Notice 2021-47 on Notice NOT-2021-47

Calendar Year

Inflation Adjustment Factor

Phase-out Amount

1995

1.1160

0

1996

1.1485

0

1997

1.1720

0

1998

1.1999

0

1999

1.2030

0

2000

1.2087

0

2001

1.2353

0

2002

1.2633

0

2003

1.2785

0

2004

1.2952

0

2005

1.3266

0

2006

1.3743

100 percent

2007

1.4222

100 percent

2008

1.4666

100 percent

2009

1.5003

100 percent

2010

1.5203

100 percent

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IRS, Notice 2021-47 on Notice NOT-2021-47

Calendar Year

Inflation Adjustment Factor

Phase-out Amount

2011

1.5326

100 percent

2012

1.5686

100 percent

2013

1.5968

100 percent

2014

1.5974

100 percent

2015

1.6245

100 percent

2016

1.6464

0

2017

1.6713

0

2018

1.7008

1.069 percent

2019

1.7334

100 percent

2020

1.7640

100 percent

2021

1.7849

0

DRAFTING INFORMATION
The principal author of this notice is Martha M. Garcia of the Office of Associate Chief Counsel (Passthroughs
and Special Industries). For further information regarding this notice, contact Ms. Garcia at (202) 317-6853 (not
a toll-free number).

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