Advanced Coal

Advanced Coal

September 01, 2012

Advanced coal power plants and gasification projects can apply for $685.5 million in federal tax credits.

Applications are due at the US Department of Energy by October 15, 2012 and at the IRS by February 15, 2013. The applications are submitted in two parts. The credits are 30% of the project cost. They are credits that were forfeited by developers after being originally allocated them as part of $1.3 billion in allocations in 2006 through 2009.

The credits can be claimed on new IGCC (integrated-gasification combined-cycle) power plants and other power projects that use “advanced” technology to generate electricity from coal. At least 75% of the fuel used in the plant must be coal. The project must be placed in service within five years after credits are awarded. Projects receiving awards will be notified by May 15, 2013. Details are in Notice 2012-51.

Keith Martin