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IRS Publishes Marginal Production Rates For 1991-2012.

JUL. 30, 2012

Notice 2012-50; 2012-31 I.R.B. 121

DATED JUL. 30, 2012
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Citations: Notice 2012-50; 2012-31 I.R.B. 121
2012 Marginal Production Rates

This notice announces the applicable percentage under § 613A of the Internal Revenue Code to be used in determining percentage depletion for marginal properties for the 2012 calendar year.

Section 613A(c)(6)(C) defines the term "applicable percentage" for purposes of determining percentage depletion for oil and gas produced from marginal properties. The applicable percentage is the percentage (not greater than 25 percent) equal to the sum of 15 percent, plus one percentage point for each whole dollar by which $20 exceeds the reference price (determined under § 45K(d)(2)(C)) for crude oil for the calendar year preceding the calendar year in which the taxable year begins. The reference price determined under § 45K(d)(2)(C) for the 2011 calendar year is $95.73.

The following table contains the applicable percentages for marginal production for taxable years beginning in calendar years 1991 through 2012.

                            Notice 2012-50

 

             APPLICABLE PERCENTAGE FOR MARGINAL PRODUCTION

 

 _____________________________________________________________________

 

 

        Calendar Year               Applicable Percentage

 

 _____________________________________________________________________

 

 

           1991                        15 percent

 

           1992                        18 percent

 

           1993                        19 percent

 

           1994                        20 percent

 

           1995                        21 percent

 

           1996                        20 percent

 

           1997                        16 percent

 

           1998                        17 percent

 

           1999                        24 percent

 

           2000                        19 percent

 

           2001                        15 percent

 

           2002                        15 percent

 

           2003                        15 percent

 

           2004                        15 percent

 

           2005                        15 percent

 

           2006                        15 percent

 

           2007                        15 percent

 

           2008                        15 percent

 

           2009                        15 percent

 

           2010                        15 percent

 

           2011                        15 percent

 

 

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) 622-3110 (not a toll-free call).
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