Notice 2019-36

graph) 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
Notice 2019-36
(B) $6.
Section 43(b)(3)(B) of the Internal
Section 43(a) provides that for purpos- Revenue Code requires the Secretary to
es of section 38, the enhanced oil recovery SXEOLVK DQ LQÀDWLRQ DGMXVWPHQW IDFWRU
credit for any taxable year is an amount The enhanced oil recovery credit under
equal to 15 percent of the taxpayer’s qual- § 43 for any taxable year is reduced if
L¿HGHQKDQFHGRLOUHFRYHU\FRVWVIRUVXFK the “reference price,” determined under
§ 45K(d)(2)(C), for the calendar year
taxable year.
Section 43(b)(1) provides that the preceding the calendar year in which the
amount of the credit determined under taxable year begins is greater than $28
subsection (a) for any taxable year shall PXOWLSOLHG E\ WKH LQÀDWLRQ DGMXVWPHQW
be reduced by an amount which bears the factor for that year.
7KHWHUP³LQÀDWLRQDGMXVWPHQWIDFWRU´
same ratio to the amount of such credit
(determined without regard to this para- means, with respect to any calendar year,

2019 Section 43 Inflation
Adjustment

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1280

a fraction the numerator of which is the
*13LPSOLFLWSULFHGHÀDWRUIRUWKHSUHFHGing calendar year and the denominator of
ZKLFK LV WKH *13 LPSOLFLW SULFH GHÀDWRU
for 1990.
Because the reference price for the
2018 calendar year ($61.41) exceeds $28
PXOWLSOLHGE\WKHLQÀDWLRQDGMXVWPHQWIDFtor for the 2018 calendar year ($28 multiplied by 1.7334 = $48.5352) by $12.88,
the enhanced oil recovery credit for qualL¿HG FRVWV SDLG RU LQFXUUHG LQ  LV
phased out completely.
Table 1 contains the GNP implicit price
GHÀDWRU XVHG IRU WKH  FDOHQGDU \HDU
as well as the previously published GNP
LPSOLFLWSULFHGHÀDWRUVXVHGIRUWKH
through 2018 calendar years.

Bulletin No. 2019–23

Calendar Year
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018

Notice 2019-36 TABLE 1
GNP IMPLICIT PRICE DEFLATORS
*13,PSOLFLW3ULFH'HÀDWRU
112.9
(used for 1991)
117.0
(used for 1992)
120.9
(used for 1993)
124.1
(used for 1994)
126.0
(used for 1995)*
107.5
(used for 1996)
109.7
(used for 1997)**
112.35
(used for 1998)
112.64
(used for 1999)***
104.59
(used for 2000)
106.89
(used for 2001)
109.31
(used for 2002)
110.63
(used for 2003)
105.67
(used for 2004)****
108.23
(used for 2005)
112.129
(used for 2006)
116.036
(used for 2007)
119.656
(used for 2008)
122.407
(used for 2009)
109.764
(used for 2010)*****
110.654
(used for 2011)
113.347
(used for 2012)******
115.387
(used for 2013)
106.710
(used for 2014)*******
108.407
(used for 2015)********
109.868
(used for 2016)
111.528
(used for 2017)
113.500
(used for 2018)
110.308
(used for 2019)



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LQÀDWLRQDGMXVWPHQWIDFWRULV


%HJLQQLQJLQWZRGLJLWVIROORZWKHGHFLPDOSRLQWLQWKH*13LPSOLFLWSULFHGHÀDWRU7KH*13SULFHGHÀDWRUXVHGWRFRPSXWHWKH†
LQÀDWLRQDGMXVWPHQWIDFWRULV


%HJLQQLQJLQWKH*13LPSOLFLWSULFHGHÀDWRUZDVUHEDVHGUHODWLYHWR7KH*13LPSOLFLWSULFHGHÀDWRUXVHGWRFRPSXWHWKH†
LQÀDWLRQDGMXVWPHQWIDFWRULV


%HJLQQLQJLQWKH*13LPSOLFLWSULFHGHÀDWRUZDVUHEDVHGDQGWKH*13LPSOLFLWSULFHGHÀDWRUXVHGWRFRPSXWHWKH†LQÀDWLRQDGMXVWment factor is 81.589.

 %HJLQQLQJLQWKH*13LPSOLFLWSULFHGHÀDWRUZDVUHEDVHGDQGWKH*13LPSOLFLWSULFHGHÀDWRUXVHGWRFRPSXWHWKH†LQÀDWLRQDGMXVWment factor is 72.199.

 %HJLQQLQJLQWKH*13LPSOLFLWSULFHGHÀDWRUXVHGWRFRPSXWHWKH†LQÀDWLRQDGMXVWPHQWIDFWRULV

 %HJLQQLQJLQWKH*13LPSOLFLWSULFHGHÀDWRUZDVUHEDVHGDQGWKH*13LPSOLFLWSULFHGHÀDWRUXVHGWRFRPSXWHWKH†LQÀDWLRQDGMXVWment factor is 66.803.

%HJLQQLQJLQWKH*13LPSOLFLWSULFHGHÀDWRUXVHGWRFRPSXWHWKH†LQÀDWLRQDGMXVWPHQWIDFWRULV

Bulletin No. 2019–23

1281

June 3, 2019

7DEOHFRQWDLQVWKHLQÀDWLRQDGMXVWPHQWIDFWRUDQGWKHSKDVHRXWDPRXQWIRUWD[DEOH\HDUVEHJLQQLQJLQWKHFDOHQGDU\HDUDV
ZHOODVWKHSUHYLRXVO\SXEOLVKHGLQÀDWLRQDGMXVWPHQWIDFWRUVDQGSKDVHRXWDPRXQWVIRUWD[DEOH\HDUVEHJLQQLQJLQWKHWKURXJK
2018 calendar years.
DRAFTING INFORMATION

Calendar Year
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019

Notice 2019-36 TABLE 2
INFLATION ADJUSTMENT FACTORS AND
PHASE-OUT AMOUNTS
,QÀDWLRQ$GMXVWPHQW)DFWRU
1.0000
1.0363
1.0708
1.0992
1.1160
1.1485
1.1720
1.1999
1.2030
1.2087
1.2353
1.2633
1.2785
1.2952
1.3266
1.3743
1.4222
1.4666
1.5003
1.5203
1.5326
1.5686
1.5968
1.5974
1.6245
1.6464
1.6713
1.7008
1.7334

Phase-out Amount
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
100 percent
100 percent
100 percent
100 percent
100 percent
100 percent
100 percent
100 percent
100 percent
100 percent
0
0
1.069 percent
100 percent

7KHSULQFLSDODXWKRURIWKLVQRWLFHLV3KLO7LHJHUPDQRIWKH2I¿FHRI$VVRFLDWH&KLHI&RXQVHO3DVVWKURXJKVDQG6SHFLDO,QGXVtries). For further information regarding this notice, contact Phil Tiegerman at (202) 317-6853

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Bulletin No. 2019–23