FROM THE OFFICE OF PUBLIC AFFAIRS

The Internal Revenue Service today issued Revenue Procedure 2001-30, announcing it will resume the ruling process for the section 29 alternative fuels tax credit. This action reverses the October 2000 Rev. Proc. 2000-47, in which the IRS announced that it would not issue advance rulings on synthetic fuels tax credit eligibility.

Rulings had been suspended to provide time for the IRS and Treasury to study the issue. The IRS is resuming ruling based on the standards embraced by the IRS previously to determine eligibility for the credit. The Rev. Proc. is balanced with provisions to ensure the credit is limited to facilities eligible for the credit under the statute. The decision to resume the ruling process should increase certainty for taxpayers seeking private letter rulings from the IRS on questions related to the application of section 29.

A copy of the Rev. Proc. is attached.