### Question
Can you define what qualified marginal well means?


### Answer
**Qualified marginal well** is defined as the following in *26 U.S.C. § 45I*:

> a domestic well—


(i) the production from which during the taxable year is treated as marginal production under section 613A(c)(6), or


(ii) which, during the taxable year—


(I) has average daily production of not more than 25 barrel-of-oil equivalents (as so defined), and


(II) produces water at a rate not less than 95 percent of total well effluent

#### Citation:
  - *26 U.S.C. § 45I*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter A-Determination of Tax Liability > PART IV-CREDITS AGAINST TAX > Subpart D-Business Related Credits**

