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 of the Energy Policy Act of 2005, per instructions in the Treasury and IRS Notice 2007-52 and Notice 2007-53, which can be found at http://www.netl.doe.gov/publications/press/2007/07050-DOE_Releases_Tax_Credit_Applicatio.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 April 30, 2008, however the link to submit questions will be open only through September 30, 2007.

Guidelines for Questions to DOE

• Questions relating to DOE certification requirements or instructions as provided in the Announcement must be submitted to the DOE electronically through the link certification.questions@netl.doe.gov. 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 10 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 Jaime Park or Chuck Ramsey  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 September 30, 2007. Questions submitted after September 30, 2007 will not be answered.

Background – On June 7, 2007, the Treasury Department and the IRS issued guidance for round 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), remaining is $650 million of which $400 million remains available for integrated gasification combined cycle projects and $250 million remains available 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 $337,000. 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 projects.

DOE Responses to Tax Credit Questions

• Responses for Notice 2007-52 October 2, 2007 [PDF-14KB]
• Responses for Notice 2007-52, 53 September 21, 2007 [PDF-25KB]