INFLATION ADJUSTMENT FACTOR AND REFERENCE PRICE FOR NONCONVENTIONAL FUEL CREDIT RELEASED.

Notice 90-29

AGENCY: Internal Revenue Service, Treasury.

ACTION: Publication of inflation adjustment factor and reference price for calendar year 1989 as required by section 29(d)(2)(A) of the Internal Revenue Code (26 U.S.C. section 29(d)(2)(A) (formerly section 44D, renumbered by the Deficit Reduction Act of 1984).

SUMMARY: The inflation adjustment factor and reference price are used in determining the availability of the tax credit for production of fuel from nonconventional sources under section 29 of the Internal Revenue Code.

DATES: The 1989 inflation adjustment factor and reference price apply to qualified fuels sold during calendar year 1989.

INFLATION FACTOR: The inflation adjustment factor for calendar year 1989 is 1.6069.

PRICE: The reference price for all qualified fuels is $15.85 per equivalent barrel for the 1989 calendar year.

Because the above reference price does not exceed $23.50 multiplied by the inflation factor, the phaseout of credit provided for in section 29(b)(1) of the Internal Revenue Code does not occur for any qualified fuel based on the above reference price.

FOR FURTHER INFORMATION CONTACT: For the inflation factor --

Thomas Thompson, P:R, Internal Revenue Service, 1111 Constitution Avenue, NW., Washington, DC 20224, Telephone Number (202) 233-1210 (not a toll-free number).

For the reference price --

Noel Sheehan, CC:P&SI:6, Internal Revenue Service, 1111 Constitution Ave., NW., Washington, DC 20224, Telephone Number (202) 566-3292 (not a toll-free number).

                                   Kenneth Klein,