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pdfIRS, Notice 2021-47 on Notice NOT-2021-47
Department of the Treasury
Internal Revenue Service
Notice
Notice 2021-47
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.
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 year 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. 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.
The term "inflation adjustment factor" means, with respect to any calendar year, a fraction the numerator of
which is the GNP implicit price deflator for the preceding calendar year and the denominator of which is the
GNP implicit price deflator for 1990.
Because the reference price for the 2020 calendar year ($37.07) does not exceed $28 multiplied by the
inflation adjustment factor for the 2020 calendar year ($28 multiplied by 1.7849 = $49.9772), the enhanced oil
recovery credit for qualified costs paid or incurred in 2021 is determined without regard to the phase-out for
crude oil price increases.
Table 1 contains the GNP implicit price deflator used for the 2021 calendar year, as well as the previously
published GNP implicit price deflators used for the 1991 through 2020 calendar years.
Notice 2021-47 TABLE 1 GNP IMPLICIT PRICE DEFLATORS
Calendar Year
GNP Implicit Price Deflator
1990
112.9 (used for 1991)
1991
117.0 (used for 1992)
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IRS, Notice 2021-47 on Notice NOT-2021-47
Calendar Year
GNP Implicit Price Deflator
1992
120.9 (used for 1993)
1993
124.1 (used for 1994)
1994
126.0 (used for 1995)*
1995
107.5 (used for 1996)
1996
109.7 (used for 1997)**
1997
112.35 (used for 1998)
1998
112.64 (used for 1999)***
1999
104.59 (used for 2000)
2000
106.89 (used for 2001)
2001
109.31 (used for 2002)
2002
110.63 (used for 2003)
2003
105.67 (used for 2004)****
2004
108.23 (used for 2005)
2005
112.129 (used for 2006)
2006
116.036 (used for 2007)
2007
119.656 (used for 2008)
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IRS, Notice 2021-47 on Notice NOT-2021-47
Calendar Year
GNP Implicit Price Deflator
2008
122.407 (used for 2009)
2009
109.764 (used for 2010)*****
2010
110.654 (used for 2011)
2011
113.347 (used for 2012)******
2012
115.387 (used for 2013)
2013
106.710 (used for 2014)*******
2014
108.407 (used for 2015)********
2015
109.868 (used for 2016)
2016
111.528 (used for 2017)
2017
113.500 (used for 2018)
2018
110.308 (used for 2019)*********
2019
112.257 (used for 2020)
2020
113.586 (used for 2021)
* Beginning in 1995, the GNP implicit price deflator was rebased relative to 1992. The 1990 GNP implicit price
deflator used to compute the 1996 § 43 inflation adjustment factor is 93.6.
** Beginning in 1997, two digits follow the decimal point in the GNP implicit price deflator. The 1990 GNP price
deflator used to compute the 1998 § 43 inflation adjustment factor is 93.63.
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IRS, Notice 2021-47 on Notice NOT-2021-47
*** Beginning in 1999, the GNP implicit price deflator was rebased relative to 1996. The 1990 GNP implicit
price deflator used to compute the 2000 § 43 inflation adjustment factor is 86.53.
**** Beginning in 2003, the GNP implicit price deflator was rebased, and the 1990 GNP implicit price deflator
used to compute the 2004 § 43 inflation adjustment factor is 81.589.
***** Beginning in 2009, the GNP implicit price deflator was rebased, and the 1990 GNP implicit price deflator
used to compute the 2010 § 43 inflation adjustment factor is 72.199.
****** Beginning in 2011, the 1990 GNP implicit price deflator used to compute the 2012 § 43 inflation
adjustment factor is 72.260.
******* Beginning in 2013, the GNP implicit price deflator was rebased, and the 1990 GNP implicit price deflator
used to compute the 2014 § 43 inflation adjustment factor is 66.803.
******** Beginning in 2014, the 1990 GNP implicit price deflator used to compute the 2015 § 43 inflation
adjustment factor is 66.732.
********* Beginning in 2018, the 1990 GNP implicit price deflator used to compute the 2019 § 43 inflation
adjustment factor is 63.637.
Table 2 contains the inflation adjustment factor and the phase-out amount for taxable years beginning in the
2021 calendar year as well as the previously published inflation adjustment factors and phase-out amounts for
taxable years beginning in the 1991 through 2020 calendar years.
Notice 2021-47 TABLE 2 INFLATION ADJUSTMENT FACTORS AND PHASE-OUT AMOUNTS
Calendar Year
Inflation Adjustment Factor
Phase-out Amount
1991
1.0000
0
1992
1.0363
0
1993
1.0708
0
1994
1.0992
0
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IRS, Notice 2021-47 on Notice NOT-2021-47
Calendar Year
Inflation Adjustment Factor
Phase-out Amount
1995
1.1160
0
1996
1.1485
0
1997
1.1720
0
1998
1.1999
0
1999
1.2030
0
2000
1.2087
0
2001
1.2353
0
2002
1.2633
0
2003
1.2785
0
2004
1.2952
0
2005
1.3266
0
2006
1.3743
100 percent
2007
1.4222
100 percent
2008
1.4666
100 percent
2009
1.5003
100 percent
2010
1.5203
100 percent
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IRS, Notice 2021-47 on Notice NOT-2021-47
Calendar Year
Inflation Adjustment Factor
Phase-out Amount
2011
1.5326
100 percent
2012
1.5686
100 percent
2013
1.5968
100 percent
2014
1.5974
100 percent
2015
1.6245
100 percent
2016
1.6464
0
2017
1.6713
0
2018
1.7008
1.069 percent
2019
1.7334
100 percent
2020
1.7640
100 percent
2021
1.7849
0
DRAFTING INFORMATION
The principal author of this notice is Martha M. Garcia of the Office of Associate Chief Counsel (Passthroughs
and Special Industries). For further information regarding this notice, contact Ms. Garcia at (202) 317-6853 (not
a toll-free number).
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| File Type | application/pdf |
| File Modified | 2022-02-08 |
| File Created | 2022-02-08 |