On March 31, 2010, the IRS issued the annual notice that provides the inflation adjustment factor and reference prices for the production tax credit under Section 45 of the Code. In summary, no phaseout applies to any of the various energy resources in 2010. The Notice indicates that the credit amount for calendar year 2010 is 2.15 cents/kwh for electricity produced from wind, closed-loop biomass, geothermal and solar energy; 1.1 cents/kwh for electricity produced from all other facilities; $6.27/ton of refined coal; and $2.87/ barrel-of-oil equivalent of steel industry fuel. The Section 45 tax credit amount for wind, closed-loop biomass, and geothermal and solar energy is incorrect. As noted by the IRS in the Notice, Section 45(b)(2) requires that the increased credit amount be rounded to the nearest multiple of 0.1 cent. Accordingly, the credit amount should be 2.2 cents/kwh for electricity produced from such sources. We have discussed this issue with the IRS and they have confirmed that the Notice will be corrected. A copy of the Notice is available here.