Internal Revenue Bulletin: 2017-17
April 24, 2017
Fringe benefits aircraft valuation formula. For purposes of section 1.61–21(g) of the Income Tax Regulations, relating to the rule for valuing non-commercial flights on employer-provided aircraft, the Standard Industry Fare Level (SIFL) cents-per-mile rates and terminal charge in effect for the first half of 2017 are set forth.
This notice publishes the reference price under § 45K(d)(2)(C) of the Internal Revenue Code for calendar year 2016. The reference price applies in determining the amount of the enhanced oil recovery credit under § 43, the marginal well production credit under § 45I, and the percentage depletion in case of oil produced from marginal properties under § 613A.
The notice announces the inflation adjustment factor and phase-out amount for the enhanced oil recovery credit for taxable years beginning in the 2017 calendar year. The format of the notice is identical to the format of previously published notices on this issue. The notice concludes that because the reference price for the 2016 calendar year ($38.29) does not exceed $28 multiplied by the inflation adjustment factor for the 2016 calendar year ($28 multiplied by 1.6713 = $46.7964), the enhanced oil recovery credit for qualified costs paid or incurred in 2017 is determined without regard to the phase-out for crude oil price increases. The notice contains the previously published figures for taxable years beginning in the 1991 through 2016 calendar years. The enhanced oil recovery credit for qualified costs had been phased out completely for calendar years 2006 through 2015. Calendar year 2016 was the first year since calendar year 2005 when the enhanced oil recovery credit for qualified costs was determined without regard to the phase out for crude oil price increases.
The notice announces that under § 613A(c)(6)(C) of the Internal Revenue Code, the applicable percentage for purposes of determining percentage depletion on marginal properties for calendar year 2017 is 15 percent. The format of the notice is identical to the format of notices previously published on this issue.
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