SECTION 4. CALCULATION OF

CREDIT AMOUNT

Under § 45I(b)(1)(B) and (2)(B), the tentative credit amount used to calculate the MWC for taxable years beginning in calendar year 2023 is $0.75 per Mcf ($0.50 × 1.4993 inflation adjustment

factor). Pursuant to the reduction specified in § 45I(b)(2)(A), the tentative credit amount for taxable years beginning in calendar year 2023 is reduced to zero.

Specifically, pursuant § 45I(b)(2)(A), the tentative credit amount is reduced (but not below zero) by an amount (the Reduction Amount) which bears the same ratio to such amount as (i) the excess (if any) of the applicable reference price over $2.50 ($1.67 × 1.4993 inflation adjustment factor), bears to (ii) $0.49 ($0.33 × 1.4993 inflation adjustment factor). The Reduction Amount (as adjusted for inflation) is computed as follows:

Reduction Amount

Applicable Referenc e Price

e Price −$ .

e Price −$2 50.

0 75. $0 49.

$0 49.

$ .

2022), commonly known as the Inflation Reduction Act of 2022 (IRA). Sections 2 and 3 of this notice provide relevant background and definitions, respectively, with respect to the energy efficient home improvement credit allowed under § 25C (§ 25C credit). Section 4 of this notice specifies the requirements that the forthcoming proposed regulations would set forth for qualifying as a home energy auditor for purposes of the § 25C credit. Sections 5 and 6 of this notice specify the substantiation requirement and transition rule, respectively, that the forthcoming proposed regulations would establish for taxpayers claiming the § 25C credit with respect to home energy audits. Section 7 addresses the application of the Paperwork Reduction Act to this notice. The Treasury Department and the IRS also intend to propose that the forthcoming proposed regulations would apply to taxable years ending after December 31, 2022. Until the issuance of the forthcoming proposed regulations, taxpayers may rely on the rules

The Reduction Amount is $4.70 (($5.57 - $2.50) ÷ $0.49 × $0.75) and it exceeds the tentative credit amount ($0.75). Therefore, the credit amount used to calculate the MWC for taxable years beginning in calendar year 2023 is $0.00 per Mcf.