‘‘(i) before’’; 
(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 January 1, 2019, 
and’’. 
(c) CLARIFICATIONS.— 
(1) STEEL INDUSTRY FUEL.—Subclause (I) of 
section 45(c)(7)(C)(i) of the Internal Revenue Code 
of 1986 is amended by inserting ‘‘, 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 if such person’s 
rent, license fee, or other entitlement to net pay-
ments from the owner of such facility is measured 
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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, 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 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.—Paragraph (8) of 
section 45(e) of the Internal Revenue Code of 1986 is 
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amended by adding at the end the following new subpara-
graph: 
‘‘(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 for such taxable 
year which are otherwise deductible 
under this chapter (determined with-
out regard to this subparagraph), 
‘‘(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 
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amounts to which subclauses (I) and 
(II) apply and the maximum rate of 
tax applicable under section 1 or 
11(b)(1), 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.—Subclause (II) of 
section 38(c)(4)(B)(iv) of the Internal Revenue Code of 
1986 is amended by inserting ‘‘(in the case of a refined 
coal production facility producing steel industry fuel, dur-
ing 
the 
credit 
period 
set 
forth 
in 
section 
45(e)(8)(D)(ii)(II))’’ after ‘‘service’’. 
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(f) APPLICATION OF CERTAIN RULES TO STEEL IN-
DUSTRY FUEL.— 
(1) ACTIVITY NOT ENGAGED IN FOR PROFIT.— 
Section 183 of the Internal Revenue Code of 1986 
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.—Subsection (o) of sec-
tion 7701 of the Internal Revenue Code of 1986 
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.—Para-
graph (5)(C) of section 7701(o) of such Code is 
amended by striking ‘‘The determination’’ and 
inserting ‘‘Except as provided in paragraph (6), 
the determination’’. 
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