I.R.C. § 48B(a) In General —
For purposes of section 46, the qualifying gasification project credit for any taxable year is an amount equal
to 20 percent (30 percent in the case of credits allocated under subsection (d)(1)(B))
of the qualified investment for such taxable year.
I.R.C. § 48B(b) Qualified Investment
I.R.C. § 48B(b)(1) In General —
For purposes of subsection (a), the qualified investment for any taxable year is the basis of eligible property
placed in service by the taxpayer during such taxable year which is part of a qualifying
gasification project—
I.R.C. § 48B(b)(1)(A)
I.R.C. § 48B(b)(1)(A)(i) —
the construction, reconstruction, or erection of which is completed by the taxpayer,
or
I.R.C. § 48B(b)(1)(A)(ii) —
which is acquired by the taxpayer if the original use of such property commences
with the taxpayer, and
I.R.C. § 48B(b)(1)(B) —
with respect to which depreciation
(or amortization in lieu of depreciation) is allowable.
I.R.C. § 48B(b)(2) Special Rule For Certain Subsidized Property —
Rules similar to section 48(a)(4) (without regard to subparagraph (D) thereof)
shall apply for purposes of this section.
I.R.C. § 48B(b)(3) Certain Qualified Progress Expenditures Rules Made Applicable —
Rules similar to the rules of subsections (c)(4) and
(d) of section 46 (as in effect on the day before the enactment of the Revenue Reconciliation
Act of 1990) shall apply for purposes of this section.
I.R.C. § 48B(c) Definitions —
For purposes of this section—
I.R.C. § 48B(c)(1) Qualifying Gasification Project —
The term “qualifying gasification project” means any project which—
I.R.C. § 48B(c)(1)(A) —
employs gasification technology,
I.R.C. § 48B(c)(1)(B) —
will be carried out by an eligible
entity, and
I.R.C. § 48B(c)(1)(C) —
any portion of the qualified investment of which is certified under the qualifying
gasification program as eligible for credit under this section in an amount (not
to exceed
$650,000,000) determined by the Secretary.
I.R.C. § 48B(c)(2) Gasification Technology —
The term “gasification technology” means any process which converts a solid or
liquid product from coal, petroleum residue,
biomass, or other materials which are recovered for their energy or feedstock value
into a synthesis gas composed primarily of carbon monoxide and hydrogen for direct
use or subsequent chemical or physical conversion.
I.R.C. § 48B(c)(3) Eligible Property —
The term “eligible property” means any property which
is a part of a qualifying gasification project and is necessary for the gasification
technology of such project.
I.R.C. § 48B(c)(4) Biomass
I.R.C. § 48B(c)(4)(A) In General —
The term “biomass” means any—
I.R.C. § 48B(c)(4)(A)(i) —
agricultural or plant waste,
I.R.C. § 48B(c)(4)(A)(ii) —
byproduct of wood or paper mill operations, including lignin in spent pulping liquors,
and
I.R.C. § 48B(c)(4)(A)(iii) —
other products of forestry maintenance.
I.R.C. § 48B(c)(4)(B) Exclusion —
The term “biomass” does not include paper which is commonly recycled.
I.R.C. § 48B(c)(5) Carbon Capture Capability —
The term “carbon capture capability” means a gasification plant design which is
determined by the Secretary to reflect reasonable consideration for, and be capable
of, accommodating the equipment
likely to be necessary to capture carbon dioxide from the gaseous stream, for later
use or sequestration, which would otherwise be emitted in the flue gas from a project
which uses a nonrenewable fuel.
I.R.C. § 48B(c)(6) Coal —
The term “coal” means anthracite, bituminous coal, subbituminous coal, lignite,
and peat.
I.R.C. § 48B(c)(7) Eligible Entity —
The term “eligible entity” means any person whose
application for certification is principally intended for use in a domestic project
which employs domestic gasification applications related to—
I.R.C. § 48B(c)(7)(A) —
chemicals,
I.R.C. § 48B(c)(7)(B) —
fertilizers,
I.R.C. § 48B(c)(7)(C) —
glass,
I.R.C. § 48B(c)(7)(D) —
steel,
I.R.C. § 48B(c)(7)(E) —
petroleum residues,
I.R.C. § 48B(c)(7)(F) —
forest products,
I.R.C. § 48B(c)(7)(G) —
agriculture, including feedlots and
dairy operations, and
I.R.C. § 48B(c)(7)(H) —
transportation grade liquid fuels.
I.R.C. § 48B(c)(8) Petroleum Residue —
The term “petroleum residue” means the carbonized
product of high-boiling hydrocarbon fractions obtained in petroleum processing.
I.R.C. § 48B(d) Qualifying Gasification Project Program
I.R.C. § 48B(d)(1) In General —
Not later than 180 days after the date of the enactment of this section, the Secretary,
in consultation with the Secretary of Energy, shall establish a qualifying gasification
project program to consider and award certifications for qualified investment eligible
for credits under this section to qualifying gasification project sponsors under
this section. The total amounts of credit that may be allocated under the program
shall not exceed—
I.R.C. § 48B(d)(1)(A) —
$350,000,000, plus
I.R.C. § 48B(d)(1)(B) —
$250,000,000 for qualifying gasification projects that include equipment which separates
and sequesters at least 75 percent of such project's total carbon dioxide emissions.
I.R.C. § 48B(d)(2) Period Of Issuance —
A certificate of eligibility under paragraph (1) may be issued only during
the 10-fiscal year period beginning on October 1, 2005.
I.R.C. § 48B(d)(3) Selection Criteria —
The Secretary shall not make a competitive certification award for qualified investment
for credit eligibility under this
section unless the recipient has documented to the satisfaction of the Secretary
that—
I.R.C. § 48B(d)(3)(A) —
the award recipient is financially viable without the receipt of additional Federal
funding associated with the proposed project,
I.R.C. § 48B(d)(3)(B) —
the recipient will provide sufficient information to the Secretary for the Secretary
to ensure that the qualified investment is spent efficiently and effectively,
I.R.C. § 48B(d)(3)(C) —
a market exists for the products of the proposed project as evidenced by contracts
or written statements of intent from potential customers,
I.R.C. § 48B(d)(3)(D) —
the fuels identified with respect to the gasification technology for such project
will comprise at least 90 percent of the fuels required by the project for the production
of chemical feedstocks, liquid transportation fuels, or coproduction of electricity,
I.R.C. § 48B(d)(3)(E) —
the award recipient's project team is competent in the construction and operation
of the gasification technology proposed, with preference given to those recipients
with experience which demonstrates successful and reliable operations of the technology
on domestic fuels so identified, and
I.R.C. § 48B(d)(3)(F) —
the award recipient has met other criteria established and published by the Secretary.
I.R.C. § 48B(d)(4) Selection Priorities —
In determining which qualifying gasification projects to certify under this section,
the Secretary shall—
I.R.C. § 48B(d)(4)(A) —
give highest priority to projects with the greatest separation and sequestration percentage
of total carbon dioxide emissions, and
I.R.C. § 48B(d)(4)(B) —
give high priority to applicant participants who have a research partnership with
an eligible educational institution
(as defined in section 529(e)(5)).
I.R.C. § 48B(e) Denial Of Double Benefit —
A credit shall not be allowed under this section for any qualified investment for
which a credit is allowed under section
48A.
I.R.C. § 48B(f) Recapture Of Credit For Failure To Sequester —
The Secretary shall provide for recapturing the benefit of any credit allowable under
subsection (a) with respect to any project which fails to attain or maintain the separation and
sequestration requirements for such project under subsection (d)(1).
(Added by Pub. L. 109-58, title XIII, Sec. 1307(a), Aug. 8, 2005, 119 Stat. 594; and amended by Pub. L. 110-343, div. B, title I, Sec. 112, Oct. 3, 2008, 122 Stat. 3765; Pub. L. 111-5, div. B, title I, Sec. 1103(b)(2)(D), Feb. 17, 2009, 123 Stat. 115.)
BACKGROUND NOTES
AMENDMENTS
2009 - Subsec. (b)(2). Pub. L. 111-5, Div. B, Sec. 1103(b)(2)(D), amended par. (2) by inserting “(without regard to subparagraph
(D) thereof)” after “section 48(a)(4)”.
2008 - Subsec. (a). Pub. L. 110-343, Div. B, Sec. 112(a), amended subsec. (a) by inserting “(30 percent in the case of
credits allocated under subsection (d)(1)(B))” after “20 percent”.
Subsec. (c)(7)(F)-(H). Pub. L. 110-343, Div. B, Sec. 112(e), amended par. (7) by striking “and” at the end of subpar.
(F), by substituting “, and” for the period at the end of subpar. (G), and by adding
subpar. (H).
Subsec. (d)(1). Pub. L. 110-343, Div. B, Sec. 112(b), amended par. (1)
by striking “shall not exceed $350,000,000 under rules similar to the rules of section
48A(d)(4).” and inserting the language “shall not exceed” and all that follows.
Subsec. (d)(4). Pub. L. 110-343, Div. B, Sec. 112(d), amended subsec.
(d) by adding par. (4).
Subsec. (f). Pub. L. 110-343, Div. B, Sec. 112(c), added subsec. (f).
EFFECTIVE DATE OF 2009 AMENDMENT
Amendment by Div. B, Sec. 1103(b)(2)(D) of Pub. L. 111-5 effective for periods after December 31, 2008, under rules similar to the rules of
section 48(m) of the Internal Revenue Code of 1986 (as in effect on the day before the date of the enactment of the Revenue Reconciliation
Act of 1990).
EFFECTIVE DATE OF 2008 AMENDMENTS
Amendments by Div. B, Sec. 112 of Pub. L. 110-343 effective for credits described in section 48B(d)(1)(B) of the Internal Revenue Code of 1986 which are allocated or reallocated after the date of the enactment of this
Act [Enacted: Oct. 3, 2008].
EFFECTIVE DATE
Effective for periods after the date of the enactment of this Act [Enacted: Aug. 8,
2005], under rules similar to the rules of section 48(m) of the Internal Revenue Code of 1986 (as in effect on the day before the date of the enactment of the Revenue Reconciliation
Act of 1990).
