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[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 1325 Introduced in Senate (IS)]

111th CONGRESS
  1st Session
                                S. 1325

 To amend the Internal Revenue Code of 1986 to permanently extend and 
modify the section 45 credit for refined coal from steel industry fuel, 
                        and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             June 23, 2009

  Mr. Specter introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL

 
 To amend the Internal Revenue Code of 1986 to permanently extend and 
modify the section 45 credit for refined coal from steel industry fuel, 
                        and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. PERMANENT EXTENSION AND MODIFICATION OF SECTION 45 CREDIT 
              FOR REFINED COAL FROM STEEL INDUSTRY FUEL.

    (a) Credit Period.--
            (1) In general.--Subclause (II) of section 45(e)(8)(D)(ii) 
        of the Internal Revenue Code of 1986 (relating to 
        modifications) is amended to read as follows:
                                    ``(II) Credit period.--In lieu of 
                                the 10-year period referred to in 
                                clauses (i) and (ii)(II) of 
                                subparagraph (A), the credit period 
                                shall be the period beginning on the 
                                date that the facility first produces 
                                steel industry fuel that is sold to an 
                                unrelated person after the date of the 
                                enactment of this subclause.''.
            (2) Conforming amendment.--Section 45(e)(8)(D) of such Code 
        is amended by striking clause (iii) and by redesignating clause 
        (iv) as clause (iii).
    (b) Extension of Placed-in-service Date.--Subparagraph (A) of 
section 45(d)(8) of the Internal Revenue Code of 1986 (defining refined 
coal production facility) is amended--
            (1) by striking ``(or any modification to a facility)'', 
        and
            (2) by striking ``2010'' and inserting ``2011''.
    (c) Clarifications.--
            (1) Steel industry fuel.--Subclause (I) of section 
        45(c)(7)(C)(i) of the Internal Revenue Code of 1986 (defining 
        steel industry fuel) is amended by inserting ``or a blend of 
        coal and petroleum coke'' after ``on coal''.
            (2) Ownership interest.--Section 45(d)(8) of such Code 
        (defining refined coal production facility) is amended by 
        adding at the end the following new flush sentence:
        ``With respect to a facility producing steel industry fuel, no 
        person (including a ground lessor, customer, supplier, or 
        technology licensor) shall be treated as having an ownership 
        interest in the facility or as otherwise entitled to the credit 
        allowable under subsection (a) with respect to such facility if 
        such person's rent, license fee, or other entitlement to net 
        payments from the owner of such facility is measured by a fixed 
        dollar amount or a fixed amount per ton, or otherwise 
        determined without regard to the profit or loss of such 
        facility.''.
            (3) Production and sale.--Subparagraph (D) of section 
        45(e)(8) of such Code (relating to special rule for steel 
        industry fuel), as amended by subsection (a)(2), is amended by 
        redesignating clause (iii) as clause (iv) and by inserting 
        after clause (ii) the following new clause:
                            ``(iii) Production and sale.--The owner of 
                        a facility producing steel industry fuel shall 
                        be treated as producing and selling steel 
                        industry fuel where that owner manufactures 
                        such steel industry fuel from coal or a blend 
                        of coal and petroleum coke to which it has 
                        title. The sale of such steel industry fuel by 
                        the owner of the facility to a person who is 
                        not the owner of the facility shall not fail to 
                        qualify as a sale to an unrelated person solely 
                        because such purchaser may also be a ground 
                        lessor, supplier, or customer.''.
    (d) Specified Credit for Purposes of Alternative Minimum Tax 
Exclusion.--Subclause (II) of section 38(c)(4)(B)(iii) of the Internal 
Revenue Code of 1986 (relating to specified credits) is amended by 
inserting ``(in the case of a refined coal production facility 
producing steel industry fuel, during the credit period set forth in 
section 45(e)(8)(D)(ii)(II))'' after ``service''.
    (e) Effective Dates.--
            (1) In general.--The amendments made by subsections (a), 
        (b), and (d) shall take effect on the date of the enactment of 
        this Act.
            (2) Clarifications.--The amendments made by subsection (c) 
        shall take effect as if included in the amendments made by the 
        Energy Improvement and Extension Act of 2008.
                                 <all>
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