I 

111TH CONGRESS 

1ST SESSION H. R. 3916 

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 HOUSE OF REPRESENTATIVES 

OCTOBER 22, 2009 

Ms. SCHWARTZ (for herself and Mr. DOYLE) introduced the following bill; 

which was referred to the Committee on Ways and Means 

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 of the 10- 

4 year period referred to in clauses (i) and (ii)(II) 

5 of subparagraph (A), the credit period shall be 

6 the period beginning on the date that the facil7 ity first produces steel industry fuel that is sold 

8 to an unrelated person after the date of the en9 actment of this subclause.’’. 

10 (2) CONFORMING AMENDMENT.—Section 

11 45(e)(8)(D) of such Code is amended by striking 

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

13 (iii). 

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

15 Subparagraph (A) of section 45(d)(8) of the Internal Rev16 enue Code of 1986 (defining refined coal production facil17 ity) is amended— 

18 (1) by striking ‘‘(or any modification to a facil19 ity’’), and 

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

21 (c) CLARIFICATIONS.— 

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

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

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


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1 inserting ‘‘, a blend of coal and petroleum coke, or 

2 other coke feedstock’’ after ‘‘on coal’’. 

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

4 of such Code (defining refined coal production facil5 ity) is amended by adding at the end the following 

6 new flush sentence: 

7 ‘‘With respect to a facility producing steel industry 

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

9 supplier, or technology licensor) shall be treated as 

10 having an ownership interest in the facility or as 

11 otherwise entitled to the credit allowable under sub12 section (a) with respect to such facility if such per13 son’s rent, license fee, or other entitlement to net 

14 payments from the owner of such facility is meas15 ured by a fixed dollar amount or a fixed amount per 

16 ton, or otherwise determined without regard to the 

17 profit or loss of such facility.’’. 

18 (3) PRODUCTION AND SALE.—Subparagraph 

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

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

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

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

23 clause (ii) the following new clause: 

24 ‘‘(iii) PRODUCTION AND SALE.—The 

25 owner of a facility producing steel industry 


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1 fuel shall be treated as producing and sell2 ing steel industry fuel where that owner 

3 manufactures such steel industry fuel from 

4 coal, a blend of coal and petroleum coke, 

5 or other coke feedstock to which is has 

6 title. The sale of such steel industry fuel 

7 by the owner of the facility to a person 

8 who is not the owner of the facility shall 

9 not fail to qualify as a sale to an unrelated 

10 person solely because such purchaser may 

11 also be a ground lessor, supplier, or cus12 tomer.’’. 

13 (d) SPECIFIED CREDIT FOR PURPOSES OF ALTER14 NATIVE MINIMUM TAX EXCLUSION.—Subclause (II) of 

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

16 1986 (relating to specified credits) is amended by insert17 ing ‘‘(in the case of a refined coal production facility pro18 ducing steel industry fuel, during the credit period set 

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

20 (e) EFFECTIVE DATES.— 

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

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

23 date of the enactment of this Act. 

24 (2) CLARIFICATIONS.—The amendments made 

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


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1 the amendments made by the Energy Improvement 

2 and Extension Act of 2008. 

Æ 


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