(1) IN
GENERAL.—Section 45(e)(8)(D)(ii)(II) 
of the Internal Revenue Code of 1986 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 subpara-
graph (A), the credit period shall be 
the period beginning on the first date 
that the facility first produces steel 
industry fuel that is sold to an unre-
lated person after the date of the en-
actment of the Steel Industry Preser-
vation Act, and ending 10 years after 
such first date.’’. 
(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.— 
Section 45(d)(8)(A) of such Code is amended— 
(1) by striking ‘‘(or any modification to a facil-
ity)’’; 
(2) by striking ‘‘placed in service before’’ and 
inserting ‘‘placed in service— 
‘‘(i) before’’; 
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(3) by striking ‘‘and’’ at the end and inserting 
‘‘or’’; and 
(4) by adding at the end the following new 
clause: 
‘‘(ii) after the date of the enactment 
of this clause and before the date that is 
18 months after such date, and’’. 
(c) CLARIFICATIONS.— 
(1) 
STEEL
INDUSTRY
FUEL.—Section 
45(c)(7)(C)(i)(I) of such Code is amended by insert-
ing ‘‘, or a blend of coal and petroleum coke, or 
other coke feedstock’’ after ‘‘on coal’’. 
(2) OWNERSHIP
INTEREST.—Section 45(d)(8) 
of such Code 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 this 
section with respect to such facility solely because 
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 
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amount per ton, or otherwise determined without re-
gard to the profit or loss of such facility.’’. 
(3) 
PRODUCTION
AND
SALE.—Section 
45(e)(8)(D) of such Code, as amended by subsection 
(a)(2), is amended by redesignating clause (iii) as 
clause (iv) and by inserting after clause (ii) the fol-
lowing new clause: 
‘‘(iii) PRODUCTION
AND
SALE.—The 
owner of a facility producing steel industry 
fuel shall be treated as producing and sell-
ing steel industry fuel where that owner 
manufactures such steel industry fuel from 
coal, a blend of coal and petroleum coke, 
or other coke feedstock 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 cus-
tomer.’’. 
(d) ELECTION TO INCREASE CREDIT IN LIEU OF 
STEEL INDUSTRY FUEL DEDUCTIONS.—Section 45(e)(8) 
of such Code is amended by adding at the end the fol-
lowing new subparagraph: 
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‘‘(E) ELECTION FOR INCREASED CREDIT 
IN LIEU OF DEDUCTIONS FOR STEEL INDUSTRY 
FUEL.—In the case of a taxpayer who produces 
steel industry fuel— 
‘‘(i) IN GENERAL.—At the election of 
the taxpayer— 
‘‘(I) no deduction shall be al-
lowed with respect to expenses made 
in connection with the production and 
sale of steel industry fuel for such 
taxable year which are otherwise de-
ductible under this chapter (deter-
mined without regard to this subpara-
graph), 
‘‘(II) no expense made in connec-
tion with the production of and sale of 
steel industry fuel which is otherwise 
chargeable to capital account in such 
taxable year shall be so charged, and 
‘‘(III) 
the 
credit 
determined 
under this section (without regard to 
this subparagraph) for such taxable 
year shall be increased by an amount 
equal to the product of the sum of the 
amounts to which subclauses (I) and 
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(II) apply and the maximum rate of 
tax applicable under section 1 or 
11(b), as applicable to the taxpayer in 
such taxable year. 
‘‘(ii) APPLICATION TO PARTNERSHIPS 
AND S CORPORATIONS.—In the case of a 
partnership or S corporation, the election 
shall be made at the partnership or S cor-
poration level. 
‘‘(iii) ELECTION.—An election under 
this subparagraph for any taxable year 
shall be made not later than the time for 
filing the return of tax for such year (in-
cluding extensions), in such manner as the 
Secretary may prescribe. Such an election, 
once made, shall be irrevocable.’’. 
(e) SPECIFIED CREDIT FOR PURPOSES OF ALTER-
NATIVE
MINIMUM
TAX
EXCLUSION.—Section 
38(c)(4)(B)(iv)(II) of such Code is amended by inserting 
‘‘(in the case of a refined coal production facility pro-
ducing steel industry fuel, during the credit period set 
forth in section 45(e)(8)(D)(ii)(II))’’ after ‘‘service’’. 
(f) APPLICATION OF CERTAIN RULES TO STEEL IN-
DUSTRY FUEL.— 
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(1) ACTIVITY NOT ENGAGED IN FOR PROFIT.— 
Section 183 of such Code is amended by adding at 
the end the following new subsection: 
‘‘(f) EXCEPTION.—This section shall not apply to any 
deduction with respect to the production of steel industry 
fuel (as defined in section 45(c)(7)(C)).’’. 
(2) APPLICATION
OF
ECONOMIC
SUBSTANCE 
DOCTRINE.— 
(A) IN
GENERAL.—Section 7701(o) of 
such Code is amended by adding at the end the 
following new paragraph: 
‘‘(6) NON-APPLICATION
TO
STEEL
INDUSTRY 
FUEL.—The economic substance doctrine shall not 
apply to any transaction to the extent such trans-
action relates to steel industry fuel (as defined in 
section 45(c)(7)(C)).’’. 
(B) CONFORMING
AMENDMENT.—Section 
7701(o)(5)(C) of such Code is amended by 
striking ‘‘The determination’’ and inserting 
‘‘Except as provided in paragraph (6), the de-
termination’’. 
(g) EFFECTIVE DATES.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section 
shall apply to fuel produced and sold after the date 
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of the enactment of this Act, in taxable years ending 
after such date. 
(2) APPLICATION
OF
ECONOMIC
SUBSTANCE 
RULES.—The amendments made by subsection (f)(2) 
shall apply to transactions entered into after the 
date of the enactment of this Act. 
Æ 
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