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IRS Publishes Marginal Production Rates for 1991-2019

JUN. 3, 2019

Notice 2019-38; 2019-23 IRB 1284

DATED JUN. 3, 2019
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Citations: Notice 2019-38; 2019-23 IRB 1284

2019 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 2019 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 2018 calendar year is $61.41.

The following table contains the applicable percentages for marginal production for taxable years beginning in calendar years 1991 through 2019.

Notice 2019-* * *
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

2012

15 percent

2013

15 percent

2014

15 percent

2015

15 percent

2016

15 percent

2017

15 percent

2018

15 percent

2019

15 percent

The principal author of this notice is Phil Tiegerman of the Office of Associate Chief Counsel (Passthroughs and Special Indus * * * 

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