Credit for Production of Natural Gas from Marginal Wells – Why it’s not too late to claim!

This past fall Notice 2017-51 was issued by the IRS to provide guidance on the marginal well production credit. The notice computed the credit amount for calendar year 2016 at $0.14 per mcf as well as provided guidance on claiming the credit. This credit is computed on a taxpayers production from a marginal well as defined by the code in which the taxpayer holds an operating interest. The notice states that a taxpayer who filed a 2016 return on or before October 2, 2017, and either did not claim the credit or claimed the credit in an amount that differs from the amount determined using the applicable reference price stated in this notice may file an amended return.
Although the credit is not as high as was predicted, we have found this credit to be very beneficial to our conventional producers. If you need any assistance in amending returns or calculating the credit, please contact me at 330-453-7633 or

Learn more about this post's author: Keith Arner

My Credentials: CPA, CVA

A Little Teaser: Keith is the managing partner at Hall, Kistler, with more than 30 years of auditing, tax, and accounting expertise for closely held and publicly held companies. He leads the firm's Oil and Gas Niche and is a Certified Valuation Analyst…

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