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(a) Claiming the credit.

(1) In general.

(2) Examples.

(b) Amount of the credit.

(c) Phase-out of the credit as crude oil prices increase.

(1) In general.

(2) Inflation adjustment.

(3) Examples.

(d) Reduction of associated deductions.

(1) In general.

(2) Certain deductions by an integrated oil company.

(e) Basis adjustment.

(f) Passthrough entity basis adjustment.

(1) Partners' interests in a partnership.

(2) Shareholders' stock in an S corporation.

(g) Examples.

§1.43–2  Qualified enhanced oil recovery project.

(a) Qualified enhanced oil recovery project.

(b) More than insignificant increase.

(c) First injection of liquids, gases, or other matter.

(1) In general.

(2) Example.

(d) Significant expansion exception.

(1) In general.

(2) Substantially unaffected reservoir volume.

(3) Terminated projects.

(4) Change in tertiary recovery method.

(5) Examples.

(e) Qualified tertiary recovery methods.

(1) In general.

(2) Tertiary recovery methods that qualify.

(3) Recovery methods that do not qualify.

(4) Examples.

§1.43–3  Certification.

(a) Petroleum engineer's certification of a project.

(1) In general.

(2) Timing of certification.

(3) Content of certification.

(b) Operator's continued certification of a project.

(1) In general.

(2) Timing of certification.

(3) Content of certification.

(c) Notice of project termination.

(1) In general.

(2) Timing of notice.

(3) Content of notice.

(d) Failure to submit certification.

(e) Effective date.

§1.43–4  Qualified enhanced oil recovery costs.

(a) Qualifying costs.

(1) In general.

(2) Costs paid or incurred for an asset which is used to implement more than one qualified enhanced oil recovery project or for other activities.

(b) Costs defined.

(1) Qualified tertiary injectant expenses.

(2) Intangible drilling and development costs.

(3) Tangible property costs.

(4) Examples.

(c) Primary purpose.

(1) In general.

(2) Tertiary injectant costs.

(3) Intangible drilling and development costs.

(4) Tangible property costs.

(5) Offshore drilling platforms.

(6) Examples.

(d) Costs paid or incurred prior to first injection.

(1) In general.

(2) First injection after filing of return for taxable year costs are allowable.

(3) First injection more than 36 months after close of taxable year costs are paid or incurred.

(4) Injections in volumes less than the volumes specified in the project plan.

(5) Examples.

(e) Other rules.

(1) Anti-abuse rule.

(2) Costs paid or incurred to acquire a project.

(3) Examples.

§1.43–5  At-risk limitation.

§1.43–6  Election out of section 43.

(a) Election to have the credit not apply.

(1) In general.

(2) Time for making the election.

(3) Manner of making the election.

(b) Election by partnerships and S corporations.

§1.43–7  Effective date of regulations.