IRS, FERC let more wells receive Sec. 29 credits

Two new ways exist for producers in the U.S. to qualify additional production for federal Sec. 29 nonconventional fuel tax credits. Until now the Federal Energy Regulatory Commission and Internal Revenue Service deadlines had limited eligible production to wells spud or recompleted and filings made under the Natural Gas Policy Act on or before Dec. 31, 1992. Large numbers of producers in many states filed timely NGPA applications seeking federal and state regulatory approval, and currently most producers believe the deadline to apply for Sec. 29 tax credits to have passed. The paper describes several filing exceptions and recommends producer response to the new rules