II 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. PERMANENT EXTENSION AND MODIFICATION 

4 OF SECTION 45 CREDIT FOR REFINED COAL 

5 FROM STEEL INDUSTRY FUEL. 

6 (a) CREDIT PERIOD.— 

7 (1) IN GENERAL.—Subclause (II) of section 

8 45(e)(8)(D)(ii) of the Internal Revenue Code of 


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1 1986 (relating to modifications) is amended to read 

2 as follows: 

3 ‘‘(II) CREDIT PERIOD.—In lieu 

4 of the 10-year period referred to in 

5 clauses (i) and (ii)(II) of subpara6 graph (A), the credit period shall be 

7 the period beginning on the date that 

8 the facility first produces steel indus9 try fuel that is sold to an unrelated 

10 person after the date of the enactment 

11 of this subclause.’’. 

12 (2) CONFORMING AMENDMENT.—Section 

13 45(e)(8)(D) of such Code is amended by striking 

14 clause (iii) and by redesignating clause (iv) as clause 

15 (iii). 

16 (b) EXTENSION OF PLACED-IN-SERVICE DATE.— 

17 Subparagraph (A) of section 45(d)(8) of the Internal Rev18 enue Code of 1986 (defining refined coal production facil19 ity) is amended— 

20 (1) by striking ‘‘(or any modification to a facil21 ity)’’, and 

22 (2) by striking ‘‘2010’’ and inserting ‘‘2011’’. 

23 (c) CLARIFICATIONS.— 

24 (1) STEEL INDUSTRY FUEL.—Subclause (I) of 

25 section 45(c)(7)(C)(i) of the Internal Revenue Code 


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1 of 1986 (defining steel industry fuel) is amended by 

2 inserting ‘‘or a blend of coal and petroleum coke’’ 

3 after ‘‘on coal’’. 

4 (2) OWNERSHIP INTEREST.—Section 45(d)(8) 

5 of such Code (defining refined coal production facil6 ity) is amended by adding at the end the following 

7 new flush sentence: 

8 ‘‘With respect to a facility producing steel industry 

9 fuel, no person (including a ground lessor, customer, 

10 supplier, or technology licensor) shall be treated as 

11 having an ownership interest in the facility or as 

12 otherwise entitled to the credit allowable under sub13 section (a) with respect to such facility if such per14 son’s rent, license fee, or other entitlement to net 

15 payments from the owner of such facility is meas16 ured by a fixed dollar amount or a fixed amount per 

17 ton, or otherwise determined without regard to the 

18 profit or loss of such facility.’’. 

19 (3) PRODUCTION AND SALE.—Subparagraph 

20 (D) of section 45(e)(8) of such Code (relating to 

21 special rule for steel industry fuel), as amended by 

22 subsection (a)(2), is amended by redesignating 

23 clause (iii) as clause (iv) and by inserting after 

24 clause (ii) the following new clause: 


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1 ‘‘(iii) PRODUCTION AND SALE.—The 

2 owner of a facility producing steel industry 

3 fuel shall be treated as producing and sell4 ing steel industry fuel where that owner 

5 manufactures such steel industry fuel from 

6 coal or a blend of coal and petroleum coke 

7 to which it has title. The sale of such steel 

8 industry fuel by the owner of the facility to 

9 a person who is not the owner of the facil10 ity shall not fail to qualify as a sale to an 

11 unrelated person solely because such pur12 chaser may also be a ground lessor, sup13 plier, or customer.’’. 

14 (d) SPECIFIED CREDIT FOR PURPOSES OF ALTER15 NATIVE MINIMUM TAX EXCLUSION.—Subclause (II) of 

16 section 38(c)(4)(B)(iii) of the Internal Revenue Code of 

17 1986 (relating to specified credits) is amended by insert18 ing ‘‘(in the case of a refined coal production facility pro19 ducing steel industry fuel, during the credit period set 

20 forth in section 45(e)(8)(D)(ii)(II))’’ after ‘‘service’’. 

21 (e) EFFECTIVE DATES.— 

22 (1) IN GENERAL.—The amendments made by 

23 subsections (a), (b), and (d) shall take effect on the 

24 date of the enactment of this Act. 


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1 (2) CLARIFICATIONS.—The amendments made 

2 by subsection (c) shall take effect as if included in 

3 the amendments made by the Energy Improvement 

4 and Extension Act of 2008. 

Æ 


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