Present Law And Proposals Relating to Increasing Domestic Energy Production And Reserves : Scheduled for a Hearing Before the Subcommittee On Energy And Agricultural Taxation of the Committee On Finance On July 27, 1990 Jcs-23-90

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Present Law And Proposals Relating to Increasing Domestic Energy Production And Reserves : Scheduled for a Hearing Before the Subcommittee On Energy And Agricultural Taxation of the Committee On Finance On July 27, 1990 Jcs-23-90
United States. Congress. Joint Committee On Taxation
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29(a)). These fuels include oil or natural gas produced from unusual geologic formations and synthetic fuels de- rived from coal (including lignite). The amount of the production credit phases out as the unregulated annual average U.S. wellhead price per barrel of domestic crude oil rises above $23.50 (as adjust- ed for inflation since 1979).
In the case of natural gas produced from a tight formation, the credit applies only to gas which is price-controlled and which is en- titled to at least 1
...50 percent of the then applicable gas ceiling price established under section 103 of the Natural Gas Policy Act of 1978 (NGPA). In addition, the credit is inapplicable to any gas produc- tion from any property on which a well is located which is subject to an election to receive an incentive price under section 107(d) of the NGPA.
The production credit is available to qualified fuels that are (1) produced in a facility placed in service before January 1, 1991, or from a well drilled before January 1, 1991, and (2) sold before Janu- ary 1, 2001.


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