FROM THE OFFICE OF PUBLIC AFFAIRS

The Internal Revenue Service today issued Revenue Procedure 2001-34, which modifies Revenue Procedure 2001-30, issued on April 20, 2001, which announced the IRS will resume the private letter ruling process for the section 29 alternative fuels tax credit.

This new Rev. Proc. modifies the circumstances in which the IRS will issue a private letter ruling regarding whether a solid fuel produced from coal is a qualified fuel under Section 29 of the IRC. The modification expands the range of sizes of coal feedstock and eliminates one activity as a necessary part of the process that results in a qualified fuel.

"The modification comes in response to industry comments identifying changes necessary to comport with industry standards. We appreciate the industry's assistance and input," stated Mark Weinberger, Assistant Secretary for Tax Policy.

A copy of the Rev. Proc. is attached.