§ 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 (30 percent in the case of credits allocated under subsection (d)(1)(B)) of the qualified investment for such taxable year.
(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—
(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.
(c)
Definitions
For purposes of this section—
(1)
Qualifying gasification project
The term “qualifying gasification project” means any project which—
(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.
(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.
(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.
(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—
(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.
(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)
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.
(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).