New advanced coal project tax credit applications available

The U.S. Treasury Department and the Department of Energy (DOE) released today new instructions for applying for the tax credits for advanced coal projects and gasification projects. The new instructions provide additional time to submit applications for the credits. For the 2007-2008 allocation round, applications for DOE certification are not due to the Energy Department until October 31, 2007.

"To further advance our nation's energy security, this Administration had made sustained investments in research, development, and wider use of advanced coal technologies a priority," Deputy Secretary of Energy Clay Sell said. "Through new and innovative programs such as the Clean Coal Power Initiative and FutureGen demonstration, private sector partnerships, and use of tax credits and loan guarantees, the Department of Energy is advancing research to further develop and deploy advanced coal technologies to meet growing energy demand."

IRS Notices 2007-52 and 2007-53, outline the procedures for allocation of credits under the advanced coal project program and the qualifying gasification project program, respectively, as well as modifications made from last year's application and allocation processes.

Under the new credit allocation process, the Department of Energy will rank a certified project relative to other certified projects and up to approximately $650 million of credits will be allocated to projects based on the DOE ranking. The modified allocation method will substantially favor projects that capture and sequester carbon dioxide emissions and will favor, to a lesser extent, projects optimized for future carbon dioxide capture.

The tax credits were part of the Energy Policy Act of 2005, which was signed by President Bush on August 8, 2005. The credits encourage the development of energy and industrial feedstock sources that will not significantly contribute to air pollution.

You may like these other stories...

IRS audits less than 1 percent of big partnershipsAccording to an April 17 report from the Government Accountability Office (GAO), the IRS audits fewer than 1 percent of large business partnerships, Stephen Ohlemacher of the...
Legislation coming out of Washington just might reduce homeowners' burden for disaster insurance. It's a topic very much on everyone's minds since the mudslide in Oso, Washington. The loss of human life was...
Divorce is hard, and the IRS isn't going to make it any easier. The IRS generally says "no" to tax deductions that might ease the pain of divorce. In certain circumstances, however, you might be able to salvage...

Upcoming CPE Webinars

Apr 22
Is everyone at your organization meeting your client service expectations? Let client service expert, Kristen Rampe, CPA help you establish a reputation of top-tier service in every facet of your firm during this one hour webinar.
Apr 24
In this session Excel expert David Ringstrom, CPA introduces you to a powerful but underutilized macro feature in Excel.
Apr 25
This material focuses on the principles of accounting for non-profit organizations' revenues. It will include discussions of revenue recognition for cash and non-cash contributions as well as other revenues commonly received by non-profit organizations.
Apr 30
During the second session of a four-part series on Individual Leadership, the focus will be on time management- a critical success factor for effective leadership. Each person has 24 hours of time to spend each day; the key is making wise investments and knowing what investments yield the greatest return.