WASHINGTON, DC - The Treasury Department and the Department of Energy (DOE) released today new instructions for applying for the tax credits for advanced coal projects and gasification projects. The new instructions provide additional time to submit applications for the credits. For the 2007-2008 allocation round, applications for DOE certification are not due to the Energy Department until October 31, 2007.
"To further advance our nation's energy security, this Administration had made sustained investments in research, development, and wider use of advanced coal technologies a priority," Deputy Secretary of Energy Clay Sell said. "Through new and innovative programs such as the Clean Coal Power Initiative and FutureGen demonstration, private sector partnerships, and use of tax credits and loan guarantees, the Department of Energy is advancing research to further develop and deploy advanced coal technologies to meet growing energy demand."
IRS Notices 2007-52 and 2007-53, outline the procedures for allocation of credits under the advanced coal project program and the qualifying gasification project program, respectively, as well as modifications made from last year's application and allocation processes.
Under the new credit allocation process, the Department of Energy will rank a certified project relative to other certified projects and up to approximately $650 million of credits will be allocated to projects based on the DOE ranking. The modified allocation method will substantially favor projects that capture and sequester carbon dioxide emissions and will favor, to a lesser extent, projects optimized for future carbon dioxide capture.
The tax credits were part of the Energy Policy Act of 2005, which was signed by President Bush on August 8, 2005. The credits encourage the development of energy and industrial feedstock sources that will not significantly contribute to air pollution.
Megan Barnett, Energy Dept. (202) 586-4940
Andrew DeSouza, Treasury Dept. (202) 622-2960