### Question
What is the definition of qualified marginal well?


### Answer
The definition of **qualified marginal well** is as follows 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**

