IRS Notice: 2019 Phase-Out Determination for Enhanced Oil Recovery Credit (IRC §43)

Enhanced oil recovery credit phased-out for 2019, the IRS announced May 31. The inflation adjustment factor along with the reference price determine how much of the credit is phased-out. Because the reference price for the 2019 calendar year ($61.41), as previously announced in Notice 2019-28, exceeds $28 multiplied by the inflation adjustment factor for the 2018 calendar year ($28 × 1.7334 = $48.5352) by $12.88, the enhanced oil recovery credit for qualified costs paid or incurred in 2019 is phased out completely. [Notice 2019-36, 2019-23 I.R.B. 1280 (June 3, 2019)]

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