. /.  WORLD TRADE  
ORGANIZATION   
G/SCM/Q2/USA/53 
20 July 2012 
 (12-3990) 
Committee on Subsidies and  
Countervailing Measures Original:   English 
 
 
 
SUBSIDIES 
 
Questions posed by TURKEY regarding the New and  
Full Notification of the UNITED STATES1 
  
 The following communication, dated 18 July 2012, is being circulated at the request of the Delegation of Turkey. 
 
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ENERGY & FUELS (ENERGY DEVELOPMENT, STORAGE AND  
TRANSPORTATION & OTHER RELATED SECTORS ) 
 
 Titles:  "Energy Supply - Renewable Energy Resources", "Energy Conservation Programs - 
Transportation Sector", "Energy Conservat ion Programs - Building Technologies" and 
"Energy Conservation - Industry Sector" 
 
Question 1 
  Under Subtitle 4 of the aforementioned programs, the United States stated that the form of the 
support can consist of " other forms of collaboration accomplished through consortium-based 
activities between government l aboratories and private industry ".  Could the United States make 
clarification on what are the types of other forms of collaboration and whether there is a requirement 
for a threshold level for public or privat e contribution within the related activities. 
 Question 2 
 
 According to Subtitle 5 of the aforementioned programs, "Participation in the program is 
determined through various competitive procedures, wh ich are open to all eligible private parties".  
Within this framework, could the United States expl ain the various competitive procedures in detail?  
What are the eligibility requirements for particip ation and actual beneficiaries under these programs?  
Could foreign entities eligible for r eceiving subsidies under these programs? 
 
                                                      
1 G/SCM/N/220/USA.   G/SCM/Q2/USA/53 
Page 2 
 
 
  OTHER ENERGY AND FUELS 
 
Title:  "Expensing of Exploration and Develo pment (E&D) Costs for Oil, Gas and other Fuels" 
 
Question 3 
 
 The Subtitle 5 of the program mentions that, "Fuel mineral producers are permitted 
accelerated deductions from taxable income" .  Could the United States make clarification regarding 
the deduction scale of the taxable income.  What are the specific requirements for fuel mineral 
producers in order to increase this deduction le vel?  Are there any production requisites for 
qualification to the program?   
 
Title: "Alternative Fuel Production Credit"  
 Question 4 
 
Within the context of the program the United St ates defined that the program is available for 
"qualified facilities"  in the United States which produce coke and coke gas.  Could the United States 
provide detailed information on the qualification process for the aforementioned facilities?  What is 
the reason for the exception regarding petroleum-based  coke or coke gas produ ction?  Can all other 
production facilities other than aforementione d exception benefit from the program?  
 
Question 5 
 
As an eligibility criterion, it is stated that "qualifying production"  is required.  Could the 
United States explain the term of "qualifying pro duction" and how this "qualifying production" is 
measured and determined by the competent authority?   
 
Title:  "Credits for Investment in Advanced  Coal Facilities and Advanced Gasification 
Facilities"  
Question 6 
 
 It is stated that the program provides a cr edit reduction for taxpayers investing in qualified 
facilities.  Could the United States provide detaile d information on the qualification process for these 
facilities? 
 
OTHER 
 
Title:  "Empowerment Zones and Renewal Communities" 
 
Question 7  
 Under "Duration" Subtitle of the program, the United States mentioned that "Empowerment 
Zone and DC Zone tax benefits are generally  scheduled to expire on 31 December 2011".  Could the 
United States clarify whether the program for Empo werment Zone and DC Zone has been expired at 
the end of 2011?  Is there an exception for extensi on of the tax benefits for some sectors in these 
zones?    
 
 
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