106 
‘‘(3) VERIFICATION.—No amount shall be al-
lowed as a credit under subsection (a) with respect 
to which the taxpayer has not submitted such infor-
mation or certification as the Secretary, in consulta-
tion with the Secretary of Energy, determines nec-
essary.’’. 
(b) CREDIT TO BE PART OF BUSINESS CREDIT.— 
Section 38(b) of such Code, as amended by this Act, is 
amended by striking ‘‘plus’’ at the end of paragraph (35), 
by striking the period at the end of paragraph (36) and 
inserting ‘‘, plus’’, and by adding at the end the following: 
‘‘(37) the natural gas vehicle credit determined 
under section 45S(a).’’. 
(c) CONFORMING AMENDMENT.—The table of sec-
tions for subpart D of part IV of subchapter A of chapter 
1 of such Code is amended by inserting after the item 
relating to section 45R the following new item: 
‘‘Sec. 45S. Production of vehicles fueled by natural gas or liquified natural 
gas.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to vehicles produced after Decem-
ber 31, 2008. 
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107 
TITLE VII—CLEAN COAL 
SEC. 701. COAL-TO-LIQUID FACILITIES. 
(a) IN GENERAL.—Section 168 of the Internal Rev-
enue Code of 1986 (relating to accelerated cost recovery 
system) is amended by adding at the end the following: 
‘‘(o) SPECIAL ALLOWANCE
FOR COAL-TO-LIQUID 
PLANT PROPERTY.— 
‘‘(1) ADDITIONAL ALLOWANCE.—In the case of 
any qualified coal-to-liquid plant property— 
‘‘(A) the depreciation deduction provided 
by section 167(a) for the taxable year in which 
such property is placed in service shall include 
an allowance equal to 50 percent of the ad-
justed basis of such property, and 
‘‘(B) the adjusted basis of such property 
shall be reduced by the amount of such deduc-
tion before computing the amount otherwise al-
lowable as a depreciation deduction under this 
chapter for such taxable year and any subse-
quent taxable year. 
‘‘(2) QUALIFIED COAL-TO-LIQUID PLANT PROP-
ERTY.— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
coal-to-liquid plant property’ means property of 
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108 
a character subject to the allowance for depre-
ciation— 
‘‘(i) which is part of a commercial- 
scale project that converts coal to 1 or 
more liquid or gaseous transportation fuel 
that demonstrates the capture, and seques-
tration or disposal or use of, the carbon di-
oxide produced in the conversion process, 
and that, on the basis of carbon dioxide se-
questration plan prepared by the applicant, 
is certified by the Administrator of the En-
vironmental Protection Agency, in con-
sultation with the Secretary of Energy, as 
producing fuel with life cycle carbon diox-
ide emissions at or below the average life- 
cycle carbon dioxide emissions for the same 
type of fuel produced at traditional petro-
leum based facilities with similar annual 
capacities, 
‘‘(ii) which is used in the United 
States solely to produce coal-to-liquid fuels, 
‘‘(iii) the original use of which com-
mences with the taxpayer after the date of 
the enactment of this subsection, 
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109 
‘‘(iv) which has a nameplate capacity 
of 30,000 barrels per day production of 
coal-to-liquid fuels, 
‘‘(v) which is acquired by the taxpayer 
by purchase (as defined in section 179(d)) 
after the date of the enactment of this sub-
section, but only if no written binding con-
tract for the acquisition was in effect on or 
before the date of the enactment of this 
subsection, and 
‘‘(vi) which is placed in service by the 
taxpayer before January 1, 2013. 
‘‘(B) EXCEPTIONS.— 
‘‘(i) 
ALTERNATIVE
DEPRECIATION 
PROPERTY.—Such term shall not include 
any 
property 
described 
in 
section 
168(k)(2)(D)(i). 
‘‘(ii) TAX-EXEMPT
BOND-FINANCED 
PROPERTY.—Such term shall not include 
any property any portion of which is fi-
nanced with the proceeds of any obligation 
the interest on which is exempt from tax 
under section 103. 
‘‘(iii) ELECTION OUT.—If a taxpayer 
makes an election under this subparagraph 
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110 
with respect to any class of property for 
any taxable year, this subsection shall not 
apply to all property in such class placed 
in service during such taxable year. 
‘‘(3) SPECIAL
RULES.—For purposes of this 
subsection, rules similar to the rules of subpara-
graph (E) of section 168(k)(2) shall apply, except 
that such subparagraph shall be applied— 
‘‘(A) by substituting ‘the date of the enact-
ment of subsection (l)’ for ‘December 31, 2007’ 
each place it appears therein, 
‘‘(B) by substituting ‘January 1, 2013’ for 
‘January 1, 2010’ in clause (i) thereof, and 
‘‘(C) by substituting ‘qualified coal-to-liq-
uid plant property’ for ‘qualified property’ in 
clause (iv) thereof. 
‘‘(4) ALLOWANCE AGAINST ALTERNATIVE MIN-
IMUM TAX.—For purposes of this subsection, rules 
similar to the rules of section 168(k)(2)(G) shall 
apply. 
‘‘(5) RECAPTURE.—For purposes of this sub-
section, rules similar to the rules under section 
179(d)(10) shall apply with respect to any qualified 
coal-to-liquid plant property which ceases to be 
qualified coal-to-liquid plant property.’’. 
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111 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to property placed in service after 
the date of the enactment of this Act, in taxable years 
ending after such date. 
SEC. 702. PERMANENT EXTENSION OF THE CREDIT FOR 
NONBUSINESS ENERGY PROPERTY AND THE 
CREDIT FOR GAS PRODUCED FROM BIOMASS 
AND 
FOR 
SYNTHETIC 
FUELS 
PRODUCED 
FROM COAL. 
(a) CREDIT FOR NONBUSINESS ENERGY PROPERTY 
MADE PERMANENT.— 
(1) IN GENERAL.—Section 25C of the Internal 
Revenue Code of 1986 is amended by striking sub-
section (g). 
(2) EFFECTIVE DATE.—The amendment made 
by this subsection shall apply to property placed in 
service after December 31, 2008. 
(b) CREDIT FOR GAS PRODUCED FROM BIOMASS 
AND
FOR SYNTHETIC FUELS PRODUCED FROM COAL 
MADE PERMANENT.— 
(1) IN GENERAL.—Subparagraph (B) of section 
45K(f)(1) of such Code is amended to read as fol-
lows: 
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