The IRS set the inflation adjustment factor for the Renewable Electricity Production Credit (REPC) at 1.9971 and the reference price for wind-generated electricity at USD 0.031 per kilowatt hour for the 2025 tax year.
The US Internal Revenue Service (IRS) has issued Notice 2025-30, published in the Internal Revenue Bulletin 2025-21 on 23 June 2025.
This notice publishes the inflation adjustment factor and reference price for calendar year 2025 for the renewable electricity production credit under Section 45 of the Internal Revenue Code (the Section 45 credit). The 2025 inflation adjustment factor and reference price are used to determine the availability of the credit, which applies to calendar year 2025 sales of kilowatt-hours of electricity produced in the US or a possession thereof from qualified energy resources.
According to Notice 2025-30, the inflation adjustment factor is set at 1.9971, and the reference price for wind-generated electricity is USD 0.031 per kilowatt-hour.
Section 45 was amended by section 13101 of Public Law 117-169, 136 Stat. 1818 (16 August 2022), commonly known as the Inflation Reduction Act of 2022 (IRA). The IRA changed how the Section 45 credit amounts are calculated for any qualified renewable energy facility placed in service after 31 December 2021.
The general credit phaseout under section 45(b)(1) does not apply to wind energy in 2025, as the reference price remains below the inflation-adjusted threshold of 15.9768 cents. However, a separate phaseout under section 45(b)(5) may still apply to wind facilities placed in service before 1 January 2022, based on their construction start date.
For electricity produced from closed-loop biomass, open-loop biomass, geothermal energy, solar energy, municipal solid waste, qualified hydropower production, and marine and hydrokinetic renewable energy, the phaseout of the credit provided in section 45(b)(1) does not apply to such electricity sold during calendar year 2025.
