Renewable Energy Acquisition Corp.

Note F - Income Taxes

The components of income tax (benefit) expense for the each of the years ended December 31, 2016 and 2015, are as follows:

		Year ended		Year ended
		December 31,		December 31,
		2016		2015
Federal:
Current	$	-	$	-
Deferred		-		-
		-		-
State:
Current		-		-
Deferred		-		-
		-		-

Total	$	-	$	-

As of December 31, 2016, the Company had an aggregate net operating loss carryforward(s) to offset future taxable income of approximately $47,400. The amount and availability of any net operating loss carryforward(s) will be subject to the limitations set forth in the Internal Revenue Code. Such factors as the number of shares ultimately issued within a three-year look-back period; whether there is a deemed more than 50% change in control; the applicable long-term tax exempt bond rate; continuity of historical business; and subsequent income of the Company all enter into the annual computation of allowable annual utilization of any net operating loss carryforward(s).

The Company's income tax (benefit) expense for the each of the years ended December 31, 2016 and 2015, are as follows:

	Year ended		Year ended
	December 31,		December 31,
	2016		2015

Statutory rate applied to loss before income taxes	$	(9,600)	$	(7,800)
Increase (decrease) in income taxes resulting from:
State income taxes		-		-
Reserve for deferred tax asset		9,600		7,800

Income tax expense	$	-	$	-

The Company’s only temporary difference due to statutory requirements in the recognition of assets and liabilities for tax and financial reporting purposes, as of December 31, 2016 and 2015, respectively, relate solely to the Company’s net operating loss carryforward(s). This difference gives rise to the financial statement carrying amounts and tax bases of assets and liabilities causing either deferred tax assets or liabilities, as necessary, as of December 31, 2016 and 2015:

	December 31,		December 31,
	2016		2015
Deferred tax assets
Net operating loss carryforwards	$	47,400	$	37,800
Less valuation allowance		(47,400)		(37,800)

Net Deferred Tax Asset	$	-	$	-

During the each of the years ended December 31, 2016 and 2015, the valuation allowance for the deferred tax asset increased by approximately $9,600 and $7,800, respectively.