US · guidance
Notice 2025-20, 2025-19 I.R.B. 1423
2025 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 2025 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 2024 calendar year is $74.48. Accordingly, 15% is the applicable percentage under § 613A to be used in determining percentage depletion for marginal properties for the 2025 calendar year.
The following table contains the applicable percentages for marginal production for taxable years beginning in calendar years 1991 through 2025.
Notice 2025-20
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
2020
15 percent
2021
15 percent
2022
15 percent
2023
15 percent
2024
15 percent
2025
15 percent
The principal author of this notice is Derek Gimbel of the Office of Associate Chief Counsel (Energy, Credits, and Excise Tax). For further information regarding this notice contact Derek Gimbel at 202-317-6853 (not a toll-free number).
History
Notice published in Internal Revenue Bulletin 2025-19, May 5, 2025, at page 1423. It states no effective date of its own; this row opens at the bulletin's publication date.
Provenance
- Source
- irs.gov
- Retrieved
- 2026-09-20
- Edition
- irs-irb-2026-09-20
- Content hash
1a3990a79a38c5d59849b7b419848c30cf0323f0a1b3ac70c740933d9b1b263b
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