2006 US Code
Title 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 1 - NORMAL TAXES AND SURTAXES
Subchapter A - Determination of Tax Liability
PART IV - CREDITS AGAINST TAX
Subpart E - Rules for Computing Investment Credit
Sec. 48B - Qualifying gasification project credit
View MetadataPublication Title | United States Code, 2006 Edition, Title 26 - INTERNAL REVENUE CODE |
Category | Bills and Statutes |
Collection | United States Code |
SuDoc Class Number | Y 1.2/5: |
Contained Within | Title 26 - INTERNAL REVENUE CODE Subtitle A - Income Taxes CHAPTER 1 - NORMAL TAXES AND SURTAXES Subchapter A - Determination of Tax Liability PART IV - CREDITS AGAINST TAX Subpart E - Rules for Computing Investment Credit Sec. 48B - Qualifying gasification project credit |
Contains | section 48B |
Date | 2006 |
Laws in Effect as of Date | January 3, 2007 |
Positive Law | No |
Disposition | standard |
Source Credit | Added Pub. L. 109-58, title XIII, §1307(b), Aug. 8, 2005, 119 Stat. 1004. |
Statutes at Large Reference | 119 Stat. 1004 |
Public Law References | Public Law 101-508, Public Law 109-58 |
§48B. Qualifying gasification project credit (a) In general
For purposes of section 46, the qualifying gasification project credit for any taxable year is an amount equal to 20 percent of the qualified investment for such taxable year.
(b) Qualified investment (1) In generalFor 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—
(A)(i) the construction, reconstruction, or erection of which is completed by the taxpayer, or
(ii) which is acquired by the taxpayer if the original use of such property commences with the taxpayer, and
(B) with respect to which depreciation (or amortization in lieu of depreciation) is allowable.
(2) Special rule for certain subsidized propertyRules similar to section 48(a)(4) shall apply for purposes of this section.
(3) Certain qualified progress expenditures rules made applicableRules 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.
(c) DefinitionsFor purposes of this section—
(1) Qualifying gasification projectThe term “qualifying gasification project” means any project which—
(A) employs gasification technology,
(B) will be carried out by an eligible entity, and
(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 0,000,000) determined by the Secretary.
(2) Gasification technologyThe 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.
(3) Eligible propertyThe 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.
(4) Biomass (A) In generalThe term “biomass” means any—
(i) agricultural or plant waste,
(ii) byproduct of wood or paper mill operations, including lignin in spent pulping liquors, and
(iii) other products of forestry maintenance.
(B) ExclusionThe term “biomass” does not include paper which is commonly recycled.
(5) Carbon capture capabilityThe 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.
(6) CoalThe term “coal” means anthracite, bituminous coal, subbituminous coal, lignite, and peat.
(7) Eligible entityThe 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—
(A) chemicals,
(B) fertilizers,
(C) glass,
(D) steel,
(E) petroleum residues,
(F) forest products, and
(G) agriculture, including feedlots and dairy operations.
(8) Petroleum residueThe term “petroleum residue” means the carbonized product of high-boiling hydrocarbon fractions obtained in petroleum processing.
(d) Qualifying gasification project program (1) In generalNot 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 0,000,000 under rules similar to the rules of section 48A(d)(4).
(2) Period of issuanceA certificate of eligibility under paragraph (1) may be issued only during the 10-fiscal year period beginning on October 1, 2005.
(3) Selection criteriaThe 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—
(A) the award recipient is financially viable without the receipt of additional Federal funding associated with the proposed project,
(B) the recipient will provide sufficient information to the Secretary for the Secretary to ensure that the qualified investment is spent efficiently and effectively,
(C) a market exists for the products of the proposed project as evidenced by contracts or written statements of intent from potential customers,
(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,
(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
(F) the award recipient has met other criteria established and published by the Secretary.
(e) Denial of double benefitA credit shall not be allowed under this section for any qualified investment for which a credit is allowed under section 48A.
(Added Pub. L. 109–58, title XIII, §1307(b), Aug. 8, 2005, 119 Stat. 1004.)
References in TextThe enactment of the Revenue Reconciliation Act of 1990, referred to in subsec. (b)(3), is the date of enactment of title XI of Pub. L. 101–508, which was approved Nov. 5, 1990.
The date of the enactment of this section, referred to in subsec. (d)(1), is the date of enactment of Pub. L. 109–58, which was approved Aug. 8, 2005.
Effective DateSection applicable to periods after Aug. 8, 2005, under rules similar to the rules of section 48(m) of this title, as in effect on the day before Nov. 5, 1990, see section 1307(d) of Pub. L. 109–58, set out as an Effective Date of 2005 Amendment note under section 46 of this title.
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