Solicitations & Business Opportunities
Tax Credit Certification Questions
The Department of Energy's National Energy Technology Laboratory (NETL) is
collaborating with the Internal Revenue Service (IRS) to evaluate applications
for Tax Credits under Section 1307(b) of the Energy Policy Act of 2005, per
instructions in the Treasury and IRS Notice 2006-24 and Notice 2006-25, which
can be found at: http://www.irs.gov/newsroom/article/0,,id=154659,00.html
Specifically, NETL will be evaluating and providing certifications of feasibility
for advanced coal and gasification projects consistent with energy policy goals
(“DOE certification”). To facilitate the review process, NETL has established
this website to receive and respond to questions from prospective applicants
regarding the Notices. NETL will post responses to questions or groups of similar
questions. This website will remain open through December 1, 2006, however
the link to submit questions will be open only through May 1, 2006.
Guidelines for Questions to DOE
relating to DOE certification requirements or instructions as provided in
the Announcement must be submitted to the DOE electronically through the
link email@example.com.(This link has been deactivated
because DOE is no longer taking questions) The DOE will not respond
to any questions regarding the specific qualifications of individual projects,
and the DOE will not respond to questions deemed inappropriate. The DOE will
attempt to respond to questions within 5 business days of receipt.
- Questions and responses will be posted by the DOE on this web page. Applicants
should not submit questions including proprietary or confidential information
that cannot be published or shared on this public website.
- Questions relating to tax or treasury issues must be directed to Douglas
Kim or Kathy Reed of the IRS at (202) 622-3110 (not a toll-free number).
- Any question received by the DOE related to tax or treasury issues will
not be answered, and the questioner will be instructed to contact the IRS
directly to obtain a response.
- All questions must be submitted to the DOE no later than May 1,
2006. Questions submitted after May 1, 2006 will not be answered.
Background – On Feb. 21, 2006, the Treasury Department
and the IRS issued guidance for two tax credits created by the Energy Policy
Act of 2005 – the advanced coal project credit and the gasification project
credit. Each credit will be allocated by the IRS among applicants certified
by the Department of Energy (DOE).
The total amount of the coal project credit ( § 48A), is $1.3 billion,
of which $800 million will be allocated to integrated gasification combined
cycle projects and $500 million will be allocated to other advanced coal projects.
The taxpayer can claim a credit for 20 percent of the qualified investment
in certified qualifying advanced coal projects using an integrated gasification
combined cycle for the taxable year and a credit for 15 percent of the qualified
investment in other certified qualifying advanced coal projects.
The total amount of the gasification project credit ( § 48B of the Internal
Revenue Code), is $350 million. Gasification is any process that converts a
solid or liquid product from coal, petroleum residue, biomass, or other materials
that 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. The taxpayer can claim an amount equal to
20 percent of the qualified investment for the taxable year in qualifying gasification
DOE Responses to Tax Credit Cerfication Questions