26 U.S.C. § 48B: Qualifying gasification project credit

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. the construction, reconstruction, or erection of which is completed by the taxpayer, or which is acquired by the taxpayer if the original use of such property commences with the taxpayer, and with respect to which depreciation (or amortization in lieu of depreciation) is allowable. Rules similar to section 48(a)(4) (without regard to subparagraph (D) thereof) shall apply for purposes of this section. 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. employs gasification technology, will be carried out by an eligible entity, and 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. 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. 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. agricultural or plant waste, byproduct of wood or paper mill operations, including lignin in spent pulping liquors, and other products of forestry maintenance. The term “biomass” does not include paper which is commonly recycled. 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. The term “coal” means anthracite, bituminous coal, subbituminous coal, lignite, and peat. chemicals, fertilizers, glass, steel, petroleum residues, forest products, agriculture, including feedlots and dairy operations, and transportation grade liquid fuels. The term “petroleum residue” means the carbonized product of high-boiling hydrocarbon fractions obtained in petroleum processing. $350,000,000, plus $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. A certificate of eligibility under paragraph (1) may be issued only during the 10-fiscal year period beginning on October 1, 2005 . the award recipient is financially viable without the receipt of additional Federal funding associated with the proposed project, the recipient will provide sufficient information to the Secretary for the Secretary to ensure that the qualified investment is spent efficiently and effectively, a market exists for the products of the proposed project as evidenced by contracts or written statements of intent from potential customers, 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, 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 the award recipient has met other criteria established and published by the Secretary. give highest priority to projects with the greatest separation and sequestration percentage of total carbon dioxide emissions, and give high priority to applicant participants who have a research partnership with an eligible educational institution (as defined in section 529(e)(5)). A credit shall not be allowed under this section for any qualified investment for which a credit is allowed under section 48A. 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).