Notice 2024-61: Inflation adjustment factor and phase-out for enhanced oil recovery credit

The enhanced oil recovery credit for qualified costs paid or incurred in 2024 is phased-out completely.

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August 19, 2024

The Internal Revenue Bulletin (IRB) 2024-34 (dated August 19, 2024) includes Notice 2024-61, which announces the inflation adjustment factor and phase-out amount for the enhanced oil recovery credit for tax years beginning in the 2024 calendar year.

Because the reference price for the 2023 calendar year ($76.10) exceeds $28 multiplied by the inflation adjustment factor for the 2024 calendar year ($28 multiplied by 2.0615 = $57.72) by $18.38, the enhanced oil recovery credit for qualified costs paid or incurred in 2024 is phased-out completely.

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