26 USC 48B - Qualifying gasification project credit

U.S Code last checked for updates: May 04, 2024

§ 48B.

Qualifying gasification project credit

(a)

In general

(b)

Qualified investment

(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—

(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 property

(3)

Certain qualified progress expenditures rules made applicable

(c)

Definitions

For purposes of this section—

(1)

Qualifying gasification project

The 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 $650,000,000) determined by the Secretary.

(2)

Gasification technology

(3)

Eligible property

(4)

Biomass

(A)

In general

The 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)

Exclusion

(5)

Carbon capture capability

(6)

Coal

(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—

(A)

chemicals,

(B)

fertilizers,

(C)

glass,

(D)

steel,

(E)

petroleum residues,

(F)

forest products,

(G)

agriculture, including feedlots and dairy operations, and

(H)

transportation grade liquid fuels.

(8)

Petroleum residue

(d)

Qualifying gasification project program

(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—

(A)

$350,000,000, plus

(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.

(2)

Period of issuance

(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—

(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.

(4)

Selection priorities

In determining which qualifying gasification projects to certify under this section, the Secretary shall—

(A)

give highest priority to projects with the greatest separation and sequestration percentage of total carbon dioxide emissions, and

(B)

give high priority to applicant participants who have a research partnership with an eligible educational institution (as defined in section 529(e)(5)).

(e)

Denial of double benefit

(f)

Recapture of credit for failure to sequester

(Added Pub. L. 109–58, title XIII, § 1307(b), Aug. 8, 2005, 119 Stat. 1004; amended Pub. L. 110–343, div. B, title I, § 112(a)–(e), Oct. 3, 2008, 122 Stat. 3824; Pub. L. 111–5, div. B, title I, § 1103(b)(2)(D), Feb. 17, 2009, 123 Stat. 321.)

cite as: 26 USC 48B