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

Published by Keith Arner

Keith chairs the Oil and Gas niche for Hall, Kistler and has been with the firm since June 2002. Prior to that, he was with a local accounting firm for 13 years. He is skilled in providing auditing, tax and accounting services for closely held and publicly held companies, as well as business valuation and litigation consulting services. He has experience with oil & gas, business valuations, manufacturing, mining and landfill operations, construction, wholesale and retail, service industries and the healthcare industry. He also has experience in management advisory services including acquisitions and sales of businesses and assists controllers for various accounting software packages. In addition to holding a CPA license, Keith is a Certified Valuation Analyst (CVA) and earned his bachelor’s of Science Degree in Accounting from The University of Akron. He is a member of the American Institute of Certified Public Accountants, the Ohio Society of Certified Public Accountants, the National Association of Certified Valuation Analysts (NACVA), the Council of Petroleum Accountants Societies – Appalachia and the Ohio Oil & Gas Association.

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