Enhanced Oil Recovery Credit

Forms and Documents

Document Name	Status
Form 8830 Form 8830 Form	New
Emergency Justification Memo F8830_Signed.pdf Supplementary Document	2022-03-08
2022 Supporting Statement (emg) 1545-1292lvd.docx Supporting Statement A	2022-03-04

IC Document Collections

IC ID	Document Title	Status
251601	Form 8830 Form	New
18080	26 CFR 1.43-3 - Certification	Modified

ICR Details

OMB Control No: 1545-1292	ICR Reference No: 202202-1545-011
Status: Received in OIRA	Previous ICR Reference No: 202008-1545-015
Agency/Subagency: TREAS/IRS	Agency Tracking No:
Title: Enhanced Oil Recovery Credit
Type of Information Collection: Revision of a currently approved collection	Common Form ICR:  No
Type of Review Request: Emergency	Approval Requested By: 03/23/2022
Date Submitted to OIRA: 03/08/2022

	Requested	Previously Approved
Expiration Date	6 Months From Approved	03/31/2024
Responses	1,590	40
Time Burden (Hours)	12,527	1,460
Cost Burden (Dollars)	0	0

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Abstract: This regulation provides guidance concerning the costs subject to the enhanced oil recovery credit, the circumstances under which the credit is available, and procedures for certifying to the Internal Revenue Service that a project meets the requirements of section 43(c) of the Internal Revenue Code. Owners of operating mineral interests use Form 8830 to claim the enhanced oil recovery credit, a part of the general business credit.

Emergency Justfication: 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. The credit is claimed on Form 8830. 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 years 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. Thus, taxpayers do not know whether the section 43 credit is available until the inflation adjustment information is published by the Secretary. 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. For taxable years 2019 and 2020, the section 43 credit was completely phased out and the Form 8830 was not needed. For taxable year 2021, due to a decrease in oil prices, the section 43 credit was not phased out and was fully available, Notice 2021-47. However, because the publication of the inflation adjustment information was published later than usual, the Form 8830 was not able to be revised under normal procedures. It is being revised currently and needs to be published for use by taxpayers in preparing their returns for the 2021 taxable year. The IRS plans to release Form 8830 on March 30, 2022, and thus requests approval of the control number by that date. Given the inability to seek public comment during such a short timeframe, IRS respectfully requests a waiver from the requirement to publish notice in the Federal Register seeking public comment during the period of Office of Management and Budget review. However, public comment will be solicited in conjunction with the subsequent extension of the approval to collect this information.

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Authorizing Statute(s): US Code: 26 USC 43 Name of Law: Enhanced oil recovery credit
  

Citations for New Statutory Requirements: None

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
	Not associated with rulemaking

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Federal Register Notices & Comments

Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 2

IC Title	Form No.	Form Name
26 CFR 1.43-3 - Certification
Form 8830	8830	Enhanced Oil Recovery Credit

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ICR Summary of Burden

	Total Request	Previously Approved	Change Due to New Statute	Change Due to Agency Discretion	Change Due to Adjustment in Estimate	Change Due to Potential Violation of the PRA
Annual Number of Responses	1,590	40	0	1,550	0	0
Annual Time Burden (Hours)	12,527	1,460	0	11,067	0	0
Annual Cost Burden (Dollars)	0	0	0	0	0	0

Burden increases because of Program Change due to Agency Discretion: Yes

Burden Increase Due to: Miscellaneous Actions

Burden decreases because of Program Change due to Agency Discretion: No

Burden Reduction Due to:

Short Statement: Form 8830 was not issued for 2019 and 2020 because it did not apply for those years due to the price of crude oil; however, it applied again for tax years beginning in 2021. Notice 2021-47 includes the previously published figures for tax years beginning in the 1991 through 2020 calendar years and reflects that for calendar year 2021, the guidance is similar to that provided for 2016 and 2017 when the enhanced oil recovery credit was determined without regard to the phase-out for crude oil price increases. The changes in burden hours for this ICR, were made to reflect said changes notified in Notice 2021-47. This will increase the number of responses by 1,550 and annual burden by 11,067 hours.

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Annual Cost to Federal Government: $68,486

Does this IC contain surveys, censuses, or employ statistical methods? No

Does this ICR request any personally identifiable information (see OMB Circular No. A-130 for an explanation of this term)? Please consult with your agency's privacy program when making this determination.     Yes

Does this ICR include a form that requires a Privacy Act Statement (see 5 U.S.C. §552a(e)(3))? Please consult with your agency's privacy program when making this determination.     No

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? No

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? No

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? No

Is this ICR related to the Pandemic Response? No

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Common Form ICR:  No

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On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).

The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:

(a) It is necessary for the proper performance of agency functions;

(b) It avoids unnecessary duplication;

(c) It reduces burden on small entities;

(d) It uses plain, coherent, and unambiguous language that is understandable to respondents;

(e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;

(f) It indicates the retention periods for recordkeeping requirements;

(g) It informs respondents of the information called for under 5 CFR 1320.8 (b)(3) about:

(i) Why the information is being collected;

(ii) Use of information;

(iii) Burden estimate;

(iv) Nature of response (voluntary, required for a benefit, or mandatory);

(v) Nature and extent of confidentiality; and

(vi) Need to display currently valid OMB control number;

(h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected.

(i) It uses effective and efficient statistical survey methodology (if applicable); and

(j) It makes appropriate use of information technology.

If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.

Certification Date: 03/08/2022

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