IRS increases 2013 PTC for closed-loop biomass

By Erin Voegele | April 09, 2013

On April 3, the U.S. Internal Revenue Service published 2013 inflation adjustment factors for the production tax credit for renewable electricity production and other energy sources in the Federal Register. The 2013 inflation adjustment factors and references prices apply to calendar year 2013 sales of kilowatt hours of electricity produced from qualified energy resources, including closed-loop biomass and open-loop biomass.

According to the document, the inflation adjustment factor for qualifying biomass projects in 2013 is 1.5063. The IRFS has not yet determined reference prices for calendar year 2013 for facilities producing power from closed-loop biomass, open-loop biomass, and municipal solid waste.

The credit for renewable electricity production for close-loop biomass is now set at 2.3 cents per kilowatt hour, an increase of 0.1 cents over the 2.2 cents per kilowatt hour set by the IRS for 2012. The 2013 credit for open-loop biomass, landfill gas and trash combustion facilities has been maintained at the 2012 level of 1.1 cents per kilowatt hour.

A full copy of the notice can be downloaded from the Federal Register website