2026 Inflation Adjustment Factor and Reference Price for Renewable Electricity Production Credit
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This notice sets the 2026 inflation adjustment factor and reference price used to calculate the federal renewable electricity production tax credit under Section 45. It affects owners and operators of qualifying renewable energy facilities that sell electricity produced in the United States or U.S. possessions during 2026. For 2026, the inflation adjustment factor is 2.0570. The wind reference price is 3.17 cents per kilowatt hour, which is low enough that the credit phaseout does not apply. The phaseout also does not apply to qualifying biomass, geothermal, solar, municipal waste, hydropower, and marine or hydrokinetic electricity sold in 2026.
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Key Changes
- Sets the 2026 inflation adjustment factor for qualified renewable energy resources at 2.0570
- Sets the 2026 wind electricity reference price at 3.17 cents per kilowatt hour
- Confirms that the Section 45 credit phaseout does not apply to qualifying renewable electricity sold in 2026
Obligations
What this law requires
Owners and operators claiming the Section 45 renewable electricity production credit for calendar year 2026 electricity sales must use the 2026 inflation adjustment factor of 2.0570 when determining credit availability and phaseout.
Owners and operators of wind facilities claiming the Section 45 credit for electricity sold during calendar year 2026 must use the wind reference price of 3.17 cents per kilowatt hour in the phaseout calculation; the Section 45(b)(1) phaseout does not apply for 2026 wind electricity sales.
Owners and operators claiming the Section 45 credit for electricity produced from closed-loop biomass, open-loop biomass, geothermal energy, solar energy, municipal solid waste, qualified hydropower, or marine and hydrokinetic renewable energy sold during calendar year 2026 should not apply the Section 45(b)(1) credit phaseout to those sales.