Marginal well gas credit is set at 81 cents per Mcf for 2026

Notice 2026-42 ran in Internal Revenue Bulletin 2026-29 on July 13. It publishes the section 45I reference price for qualified natural gas produced from qualified marginal wells during taxable years beginning in calendar year 2026, at $2.20 per 1,000 cubic feet. Applying an inflation adjustment factor of 1.6295, the credit works out to $0.81 per Mcf. Section 45I reduces the credit as the reference price climbs toward a statutory ceiling, so a low reference price leaves the credit intact. The reference price is an annual national average, not a price at any one wellhead. Marginal wells are low-volume producers. The credit is aimed at holding them in service when gas prices sit near the bottom of the range.