notice

ments. For filing season 2006 (tax year
2005), individual income taxpayers living
in Maine, Massachusetts, New Hampshire,
New York, Vermont, Maryland, and the
District of Columbia have until Tuesday,
April 18, 2006, to file documents in paper
or electronic form that are otherwise due
on April 17, 2006. These documents include U.S. individual income tax returns in
the Form 1040 series and Form 4868, Application for Automatic Extension of Time
To File U.S. Individual Income Tax Return.
Individual income taxpayers in these states
and the District of Columbia also have until April 18, 2006, to make Federal tax payments otherwise due on April 17, 2006, including the first installment of estimated
tax for tax year 2006.
The principal author of this notice is
John M. Moran of the Office of Associate
Chief Counsel, Procedure & Administration (Administrative Provisions and Judicial Practice Division). For further information regarding this notice, contact
John M. Moran at (202) 622–4940 (not a
toll-free call).

Qualifying Advanced Coal
Project Program
Notice 2006–24
SECTION 1. PURPOSE
This notice establishes the qualifying advanced coal project program under
§ 48A(d) of the Internal Revenue Code.
The purpose of the program is the deployment of advanced coal-based generation
technologies.
SECTION 2. BACKGROUND
.01 Section 46 provides that the amount
of the investment credit for any taxable
year is the sum of the credits listed in § 46.
Section 1307(a) of the Energy Policy Act
of 2005, Pub. L. 109–58, 119 Stat. 594
(August 8, 2005) (the “Act”), amended
§ 46 to add two new credits to that list:
the qualifying advanced coal project credit
and the qualifying gasification project
credit.
.02 The qualifying advanced coal
project credit is provided under § 48A,
as added by § 1307(b) of the Act. Section 48A(a) provides that the qualifying
advanced coal project credit for a taxable

March 13, 2006

year is an amount equal to (1) 20 percent
of the qualified investment (as defined
in § 48A(b)) for that taxable year in certified qualifying advanced coal projects
(as defined in § 48A(c)(1) and (e)) using
an integrated gasification combined cycle
(IGCC) (as defined in § 48A(c)(7)), and
(2) 15 percent of the qualified investment
for that taxable year in other certified qualifying advanced coal projects.
.03 Section 48A(d)(3)(A) provides
that the aggregate credits allowed under
§ 48A(a) may not exceed $1.3 billion.
Section 48A(d)(3)(B) provides that (i)
$800 million of credits are to be allocated
to IGCC projects, and (ii) $500 million of
credits are to be allocated to projects that
use other advanced coal-based generation
technologies (as defined in § 48A(c)(2)
and (f)).
.04 Section 48A(e)(3)(A) provides
that the credits for IGCC projects must
be allocated in accordance with the procedures set forth in § 48A(d), and in
relatively equal amounts to (i) projects
using bituminous coal as a primary feedstock, (ii) projects using subbituminous
coal as a primary feedstock, and (iii)
projects using lignite as a primary feedstock. Further, § 48A(e)(3)(B) provides
that IGCC projects that include (i) greenhouse gas capture capability (as defined
in § 48A(c)(5)), (ii) increased by-product
utilization, and (iii) other benefits must
be given high priority in the allocation of
credits for IGCC projects.
.05 The at-risk rules in § 49 and the recapture and other special rules in § 50 apply to the qualifying advanced coal project
credit. Further, the qualifying advanced
coal project credit generally is allowed in
the taxable year in which the eligible property (as defined in § 48A(c)(3)) is placed
in service by the taxpayer. Pursuant to
§ 48A(D)(2)(E), a taxpayer that receives
a certification under § 48A(d)(2)(D) has 5
years from the date of issuance of the certification to place the qualifying advanced
coal project in service.
SECTION 3. QUALIFYING
ADVANCED COAL PROJECT
PROGRAM
Section 48A(d)(1) provides that the
Secretary, in consultation with the Secretary of Energy, shall establish a qualifying advanced coal project program for

595

the deployment of advanced coal-based
generation technologies. The Treasury
Department and the Internal Revenue Service are establishing this program under
the rules set forth in sections 4 through 9
of this notice.
SECTION 4. ESTABLISHMENT OF
QUALIFYING ADVANCED COAL
PROJECT PROGRAM
.01 In General. The Service will consider a project under the qualifying advanced coal project program only if the
U.S. Department of Energy (“DOE”) provides a certification of feasibility and consistency with energy policy goals (“DOE
certification”) for the project. Accordingly, a taxpayer must submit, for each
qualifying advanced coal project: (1) an
application for certification by the DOE
(“application for DOE certification”), and
(2) an application for certification under
§ 48A(d)(2) by the Service (“application
for § 48A certification”). Both applications may be submitted only during the
3-year period beginning on February 21,
2006. Certifications will be issued and
credits will be allocated to projects in annual allocation rounds. The initial allocation round will be conducted in 2006.
If necessary, additional allocation rounds
will be conducted in 2007 and 2008.
.02 Program Specifications.
(1) The Service will determine the
amount of the qualifying advanced coal
project credits allocated to a qualifying
advanced coal project at the time the Service accepts the application for § 48A
certification for that project in accordance
with section 4.02(10) of this notice (see
section 5 of this notice for the requirements applicable to the application for
DOE certification and the application for
§ 48A certification).
(2) The qualifying advanced coal
project credits of $1.3 billion and the
applications for certification will be separated into the following four pools:
(a) Projects using an advanced
coal-based generation technology other
than IGCC. The aggregate amount of
qualifying advanced coal project credit for
this pool is $500 million. The maximum
amount of credits that will be allocated to
a project is $125 million.
(b) IGCC projects using bituminous
coal as a primary feedstock. The aggre-

2006–11 I.R.B.

gate amount of qualifying advanced coal
project credit for this pool is $267 million.
The maximum amount of credits that will
be allocated to a project is $133.5 million.
(c) IGCC projects using subbituminous
coal as a primary feedstock. The aggregate amount of qualifying advanced coal
project credit for this pool is $267 million.
The maximum amount of credits that will
be allocated to a project is $133.5 million.
(d) IGCC projects using lignite as a primary feedstock. The aggregate amount of
qualifying advanced coal project credit for
this pool is $266 million. The maximum
amount of credits that will be allocated to
a project is $133 million.
(3) For projects using an advanced
coal-based generation technology other
than IGCC, the aggregate credit of $500
million for this pool as described in section
4.02(2)(a) of this notice will be allocated in
the initial round of allocations to projects
providing the highest ratio of total nameplate generating capacity to requested
allocation of credits.
(4) For each IGCC pool described in
section 4.02(2)(b), (c), and (d) of this notice, the aggregate credit for that pool will
be allocated as follows in the initial round
of allocations:
(a) The aggregate credit will be allocated first to the projects entitled to priority
under § 48A(e)(3)(B) for greenhouse gas
capture capability or increased by-product
utilization.
(b) If the requested allocation of credits for these priority projects exceeds the
aggregate credit for the pool, the credit
for that pool will be allocated to the priority projects providing the highest ratio of
total nameplate generating capacity to requested allocation of credits.
(c) If the requested allocation of credits
for the priority projects in a pool does not
exceed the aggregate credit for the pool,
the remaining amount of the credit will be
allocated to the nonpriority projects providing the highest ratio of total nameplate
generating capacity to requested allocation
of credits.
(5) If the aggregate credit for a pool
is not fully allocated in the initial round
of allocations in 2006, similar allocation
rounds will be conducted in 2007 and 2008
until the aggregate credit is fully allocated.
Generally, the results of each year will be
announced.

2006–11 I.R.B.

(6) If the same project would otherwise
be allocated credits under both the qualifying advanced coal project program under
this notice and the qualifying gasification
project program under Notice 2006–25,
2006–11 I.R.B. 609, the following rules
apply:
(a) If the project is allocated the full
amount of the qualifying advanced coal
project credit requested by the taxpayer, no
qualifying gasification project credit will
be allocated to the project;
(b) If the project is allocated the full
amount of the qualifying gasification
project credit requested by the taxpayer,
no qualifying advanced coal project credit
will be allocated to the project;
(c) If the project is allocated less than
the full amount of the qualifying advanced
coal project credit requested by the taxpayer, the qualifying gasification project
credit may be allocated to the project with
respect to the qualified investment under
§ 48B for which a qualifying advanced
coal project credit is not allowed under
§ 48A; and
(d) If the project is allocated less than
the full amount of the qualifying gasification project credit requested by the taxpayer, the qualifying advanced coal project
credit may be allocated to the project with
respect to the qualified investment under
§ 48A for which a qualifying gasification
project credit is not allowed under § 48B.
(7) For each allocation round there will
be an annual application period during
which a taxpayer may file its application
for § 48A certification. The Service will
consider a project in an allocation round
only if the application for § 48A certification for the project is submitted during the
application period for that round and the
DOE provides the DOE certification for
the project before the end of the application period.
(8) For the initial allocation round conducted in 2006, the application period begins on February 21, 2006, and ends on
October 2, 2006. Any completed application for § 48A certification received by
the Service before October 3, 2006, will be
deemed to be submitted by the taxpayer on
October 2, 2006. For 2007, the application
period begins on October 3, 2006, and ends
on October 1, 2007, and any completed application for § 48A certification received
by the Service after October 2, 2006, and
before October 2, 2007, will be deemed to

596

be submitted by the taxpayer on October
1, 2007. For 2008, the application period
begins on October 2, 2007, and ends on
October 1, 2008, and any completed application for § 48A certification received
by the Service after October 1, 2007, and
before October 2, 2008, will be deemed to
be submitted by the taxpayer on October
1, 2008. For purposes of this notice, an
application that is submitted by U.S. mail
will be treated as received by the Service
on the date of the postmark and an application submitted by a private delivery service
will be treated as received by the Service
on the date recorded or the date marked in
accordance with § 7502(f)(2)(C).
(9) See section 5.02 of this notice and
Appendix B to this notice for the information to be submitted to the DOE in an
application for DOE certification. Appendix B to this notice also provides the
instructions and address for filing the application for DOE certification. The DOE
will determine the feasibility of the project
and its consistency with energy policy
goals and, if the project is determined to
be feasible and consistent with energy policy goals, will provide a DOE certification
for the project to the Service. If an application for DOE certification is postmarked
on or before June 30 of a calendar year,
the DOE will determine the feasibility of
the project and its consistency with energy
policy goals and (for projects determined
to be feasible and consistent) provide the
DOE certification by October 1 of that
calendar year.
(10) By November 30 of the calendar
year in which an application for § 48A certification is deemed to be submitted (as determined under section 4.02(8) of this notice), the Service will accept or reject the
taxpayer’s application for § 48A certification and will notify the taxpayer, by letter,
of its decision.
(11) If the taxpayer’s application for
§ 48A certification is accepted, the acceptance letter will state the amount of
the credit allocated to the project. If a
credit is allocated to a taxpayer’s project,
the taxpayer will be required to execute a
closing agreement in the form set forth in
Appendix A to this notice. By January 31
of the following year, the taxpayer must
execute and return the closing agreement
to the Service at the appropriate address
listed in section 5.04 of this notice or listed
in later guidance published in the Internal

March 13, 2006

Revenue Bulletin. The Service will execute and return the closing agreement to
the taxpayer by March 31 of such following year. The executed closing agreement
applies only to the accepted taxpayer. Accordingly, any successor in interest must
execute a new closing agreement with the
Service. If the successor in interest does
not execute a new closing agreement, the
following rules apply:
(a) In the case of an interest acquired at
or before the time the qualifying advanced
coal project is placed in service, any credit
allocated to the project will be fully forfeited (and rules similar to the recapture
rules of § 50(a) apply with respect to qualified progress expenditures); and
(b) In the case of an interest acquired after the qualifying advanced coal project is
placed in service, the project ceases to be
investment credit property and the recapture rules of § 50(a) (and similar rules with
respect to qualified progress expenditures)
apply.
SECTION 5. APPLICATIONS FOR
CERTIFICATIONS
.01 In General. An application for
§ 48A certification and a separate application for DOE certification must be
submitted for each qualifying advanced
coal project. If an application for DOE
certification does not include all of the information required by section 5.02 of this
notice and meet the requirements in sections 7.01 and 7.02 of this notice, the DOE
may decline to accept the application. If
an application for § 48A certification does
not include all of the information listed in
section 5.03 of this notice and meet the
requirements in sections 7.01 and 7.02
of this notice, the application will not be
accepted by the Service.
.02 Information Required in the Application for DOE Certification. An application for DOE certification must include all
of the information requested in Appendix
B to this notice and all of the following:
(1) The name, address, and taxpayer
identification number of the taxpayer;
(2) The name and telephone number of
a contact person;
(3) The name and address (or other
unique identifying designation) of the
qualifying advanced coal project;
(4) A statement specifying whether the
project is an IGCC project or a qualifying

March 13, 2006

advanced coal project that uses another advanced coal-based technology;
(5) In the case of an IGCC project, a
statement specifying the type of coal (bituminous coal, subbituminous coal, or lignite) that will be the primary feedstock. An
application for DOE certification with respect to an IGCC project will not be considered unless one of these types of coal
is the primary feedstock. For purposes of
§ 48A(e)(3)(A), a type of coal is the primary feedstock only if at all times more
than 50 percent of the cumulative total fuel
input (coal and any other fuel input) for the
project will consist of that type of coal;
(6) The estimated total cost of the
project and the estimated total qualified
investment in the eligible property that
will be part of the project;
(7) The amount of the qualifying advanced coal project credit requested for the
project. The amount requested must not
exceed the maximum amount provided in
section 4.02(2) of this notice;
(8) If the taxpayer is or will be requesting an amount of the qualifying gasification project credit under § 48B for the same
project, a statement specifying the credit
the taxpayer prefers to receive;
(9) A statement specifying whether the
project is a new electric generation unit
(as defined in § 48A(c)(6)), a retrofit of
an existing electric generation unit, or a
repower of an existing electric generation
unit; and
(10) The exact total nameplate generating capacity of the project.
.03 Information Required in the Application for § 48A Certification. Pursuant to
§ 48A(d)(2)(B), an application for § 48A
certification must include all of the following:
(1) The name, address, and taxpayer
identification number of the taxpayer;
(2) The name and telephone number of
a contact person. If necessary, attach any
required power of attorney, preferably on
Form 2848, Power of Attorney and Declaration of Representative; and
(3) A paper copy of the completed application for DOE certification submitted
with respect to the project in accordance
with section 5.02 of this notice.
.04 Instructions and Address for Filing
§ 48A Application. Applications for § 48A
certification should be marked: SECTION
48A APPLICATION FOR CERTIFICA-

597

TION. There is no user fee for these applications.
(1) Applications submitted by U.S. mail
must be sent to:
Internal Revenue Service
Attn: CC:PSI:6, Room 5313
P.O. Box 7604
Ben Franklin Station
Washington, DC 20044

Applications submitted by a private delivery service must be sent to:
Internal Revenue Service
Attn: CC:PSI:6, Room 5313
1111 Constitution Ave., N.W.
Washington, DC 20224

(2) Applications may also be hand delivered Monday through Friday between
the hours of 8 a.m. and 4 p.m. to:
Courier’s Desk
Internal Revenue Service
Attn: CC:PSI:6, Room 5313
1111 Constitution Avenue, N.W.
Washington, DC 20224

SECTION 6. ISSUANCE OF
CERTIFICATION
.01 In General. Section 48A(d)(2)(D)
provides that a taxpayer shall have 2
years from the date of acceptance of the
§ 48A application during which to provide evidence that the criteria set forth in
§ 48A(e)(2) have been met. Pursuant to
§ 48A(e)(2), a project shall be eligible for
certification only if (A) the taxpayer has
received all federal and state environmental authorizations or reviews necessary
to commence construction of the project,
and (B) the taxpayer, except in the case
of a retrofit or repower of an existing
generation unit, has purchased or entered
into a binding contract for the purchase of
the main steam turbine or turbines for the
project, except that this contract may be
contingent upon receipt of a certification
under § 48A(d)(2). Section 48A(d)(2)(E)
provides that a taxpayer that receives a
certification has 5 years from the date of
issuance of the certification to place the
project in service and that the certification

2006–11 I.R.B.

is void if the project is not placed in service by the end of that five-year period.
.02 Requirements for Certification.
Within 2 years from the date that the Service accepts the taxpayer’s application for
§ 48A certification under section 4.02(10)
of this notice, the taxpayer must submit
to the Service documentation establishing
that the requirements of § 48A(e)(2) are
satisfied. See also sections 7.01 and 7.02
of this notice for other requirements that
must be satisfied. The taxpayer should
mark the package “SECTION 48A CERTIFICATION REQUIREMENTS” and
send it to the appropriate address listed
in section 5.04 of this notice or listed in
later guidance published in the Internal
Revenue Bulletin.
.03 Service’s Action on Certification.
After receiving the material in section
6.02 of this notice, the Service will decide whether or not to certify the project
and will notify the taxpayer, by letter, of
that decision. If the Service certifies the
project, the date of this letter is the date of
issuance of the certification.
SECTION 7. OTHER REQUIREMENTS
.01 Signature. Each submission under sections 5 and 6 of this notice must
be signed and dated by the taxpayer. A
stamped signature or faxed signature is not
permitted.
.02 Penalties of Perjury Statement.
(1) Each submission under sections 5
and 6 of this notice must be accompanied by the following declaration: “Under
penalties of perjury, I declare that I have
examined this submission, including accompanying documents, and, to the best
of my knowledge and belief, all of the
facts contained herein are true, correct, and
complete.”
(2) The declaration must be signed and
dated by the taxpayer. The person signing for the taxpayer must have personal
knowledge of the facts. A stamped signature or faxed signature is not permitted.
.03 Effect of an Acceptance, Allocation, or Certification. An acceptance,
allocation, or certification by the Service
under this notice is not a determination
that a project qualifies for the qualifying
advanced coal project credit under § 48A.
The Service may, upon examination (and
after any appropriate consultation with

2006–11 I.R.B.

DOE), determine that the project does not
qualify for this credit.
.04 No Right to a Conference or Appeal.
A taxpayer does not have a right to a conference relating to any matters under this
notice. Further, a taxpayer does not have
a right to appeal the decisions made under
this notice (including the acceptance or rejection of the application for DOE or § 48A
certification, the amount of credit allocated
to the project, or whether or not to certify
the project) to an Associate Chief Counsel
or any other official of the Service.
SECTION 8. REVIEW AND
REDISTRIBUTION
.01 In General. Section 48A(d)(4)(A)
provides that the credits allocated under
§ 48A must be reviewed not later than August 8, 2011. Pursuant to § 48A(d)(4)(B),
credits available under § 48A(d)(3)(B)(i)
and (ii) may be reallocated if (i) there is an
insufficient quantity of qualifying applications for certification pending at the time
of the review; or (ii) any certification made
pursuant to § 48A(d)(2) has been revoked
pursuant to § 48A(d)(2)(D). If credits under § 48A(d)(3)(B)(i) and (ii) are available
for reallocation, § 48A(d)(4)(C) authorizes
the conduct of an additional program for
applications for certification.
.02 Review and Redistribution of Credits.
(1) In general. If, after the allocation
round in 2008, the entire credit for a pool
is not fully subscribed (i.e., the aggregate
credit for the pool has not been fully allocated), the remaining credits from that pool
will be reallocated to pools that have been
fully subscribed. Credits from pools not
fully subscribed will be reallocated to fully
subscribed pools in proportion to the aggregate amounts of credit specified for the
fully subscribed pools in section 4.02(2) of
this notice. Future guidance will prescribe
the procedures applicable to applications
for certification with respect to the reallocated credits.
(2) Reduction or forfeiture of allocated
credits. Under the closing agreement set
forth in Appendix A to this notice, the
qualifying advanced coal project credits
allocated under section 4 of this notice will
be reduced or forfeited in certain situations. A taxpayer must notify the Service
of the amount of any reduction or forfeiture required under the closing agreement.

598

This notification must be sent to the appropriate address listed in section 5.04 of this
notice or listed in later guidance published
in the Internal Revenue Bulletin.
The amount of any reduction or forfeiture of the allocated credits will be returned to the appropriate allocation pool
and included in the aggregate credit remaining to be allocated in the allocation
round following the reduction or forfeiture. If the reduction or forfeiture occurs
after the allocation round in 2008, future
guidance will prescribe procedures applicable to applications for certification with
respect to the returned credits.
SECTION 9. QUALIFIED PROGRESS
EXPENDITURES
.01 Section 48A(b)(3) provides that
rules similar to the rules of § 46(c)(4)
and (d) (as in effect on the day before the
enactment of the Revenue Reconciliation
Act of 1990) shall apply for purposes of
§ 48A. Former §§ 46(c)(4) and 46(d) provided the rules for claiming the investment
credit on qualified progress expenditures
(as defined in former § 46(d)(3)) made
by a taxpayer during the taxable year for
the construction of progress expenditure
property (as defined in former § 46(d)(2)).
.02 In the case of self-constructed property (as defined in former § 46(d)(5)(A)),
former § 46(d)(3)(A) defined qualified
progress expenditures to mean the amount
that is properly chargeable (during the
taxable year) to capital account with respect to that property. With respect to a
qualifying advanced coal project that is
self-constructed property, amounts paid or
incurred are chargeable to capital account
at the time and to the extent they are properly includible in computing basis under
the taxpayer’s method of accounting (for
example, after applying the requirements
of § 461, including the economic performance requirement of § 461(h)).
.03 To claim the qualifying advanced
coal project credit on the qualified
progress expenditures paid or incurred
by a taxpayer during the taxable year for
construction of a qualifying advanced coal
project, the taxpayer must make an election under the rules set forth in § 1.46–5(o)
of the Income Tax Regulations. A taxpayer may not make the qualified progress
expenditures election for a qualifying
advanced coal project until the taxpayer

March 13, 2006

has received an acceptance letter for the
project under section 4.02(10) of this notice.
.04 If a taxpayer makes the qualified
progress expenditures election pursuant to
section 9.03 of this notice, rules similar
to the recapture rules in § 50(a)(2)(A)-(D)
apply. In addition to the cessation events
listed in § 50(a)(2)(A), examples of other
events that will cause the project to cease
being a qualifying advanced coal project
are:
(1) Failure to satisfy any of the certification requirements in § 48A(e)(2) within
2 years from the date that the Service accepted the taxpayer’s application for § 48A
certification for the project under section
4.02(10) of this notice;
(2) Failure to receive a certification for
the project in accordance with section 6.03
of this notice;
(3) Failure to place the project in service
within 5 years from the date of issuance of
the certification under section 6.03 of this
notice; or
(4) In the case of an IGCC project
that was entitled to priority under
§ 48A(e)(3)(B), failure to provide the
priority benefit on the date the project is
placed in service.

March 13, 2006

SECTION 10. EFFECTIVE DATE
This notice is effective February 21,
2006.
SECTION 11. PAPERWORK
REDUCTION ACT
The collection of information contained
in this notice has been reviewed and approved by the Office of Management and
Budget in accordance with the Paperwork
Reduction Act (44 U.S.C. 3507) under
control number 1545–2003.
An agency may not conduct or sponsor,
and a person is not required to respond
to, a collection of information unless the
collection of information displays a valid
OMB control number.
The collections of information in this
notice are in sections 4, 5, 6, 7, 8, and Appendix B of this notice. This information
is required to obtain an allocation of qualifying advanced coal project credits. This
information will be used by the Service to
verify that the taxpayer is eligible for the
qualifying advanced coal project credits.
The collection of information is required
to obtain a benefit. The likely respondents
are business or other for-profit institutions.

599

The estimated total annual reporting
burden is 4,950 hours.
The estimated annual burden per respondent varies from 70 to 150 hours, depending on individual circumstances, with
an estimated average of 110 hours. The estimated number of respondents is 45.
The estimated annual frequency of responses is on occasion.
Books or records relating to a collection
of information must be retained as long
as their contents may become material in
the administration of any internal revenue
law. Generally, tax returns and tax return
information are confidential, as required
by 26 U.S.C. 6103.
SECTION 12. DRAFTING
INFORMATION
The principal author of this notice is
Douglas H. Kim of the Office of Associate
Chief Counsel (Passthroughs & Special Industries). For further information regarding this notice, contact Mr. Kim at (202)
622–3110 (not a toll-free call).

2006–11 I.R.B.

APPENDIX A
CLOSING AGREEMENT

Under § 7121 of the Internal Revenue Code, [insert taxpayer’s name, address, and identifying number] (“Taxpayer”) and the
Commissioner of Internal Revenue (“Commissioner”) make the following closing agreement:
WHEREAS:
1. On or before October [insert date and year], Taxpayer submitted to the Internal Revenue Service (“IRS”), an application for
certification under the qualifying advanced coal project program described in Notice 2006–24 (“Application for § 48A Certification”);
2. Taxpayer’s Application for § 48A Certification is for the qualifying advanced coal project (the “Project”) described below—
(1) The Project will use [insert either “an integrated gasification combined cycle (as defined in § 48A(c)(7))” or “an advanced
coal-based technology (as defined in § 48A(c)(2) and (f)) other than an integrated gasification combined cycle”];
(2) The Project will be located at [insert address or other identifying designation];
(3) The Project is [insert either: “a new electric generation unit (as defined in § 48A(c)(6))”; “a retrofit of an existing electric
generation unit (as defined in § 48A(c)(6))”; or “a repower of an existing electric generation unit (as defined in § 48a(c)(6)”);
(4) The Project will have a total nameplate generating capacity of [insert number] megawatts;
[If the Project is an integrated gasification combined cycle project, insert:
(5) At all times more than 50 percent of the cumulative total fuel input (coal and any other fuel input) for the Project will be
[insert either: “bituminous coal”; “subbituminous coal”; or “lignite”];
(6) The Project is entitled to priority under § 48A(e)(3)(B) for [insert either: “greenhouse gas capture capability (as defined
in § 48A(c)(5))”; “increased by-product utilization”; or “both greenhouse gas capture capability (as defined in § 48A(c)(5)) and
increased by-product utilization”];] and
3. On or before November 30, [insert year], the IRS accepted Taxpayer’s Application for § 48A Certification for the Project and
allocated a qualifying advanced coal project credit under § 48A in the amount of $[insert number] to the Project.
NOW IT IS HEREBY DETERMINED AND AGREED FOR FEDERAL INCOME TAX PURPOSES THAT:
1. The total amount of the qualifying advanced coal project credit to be claimed for the Project under § 48A(a) must not exceed
$[insert the number in WHEREAS clause #3].
2. If Taxpayer fails to satisfy any of the certification requirements in § 48A(e)(2) within 2 years of [insert date of acceptance
letter issued under section 4.02(10) of Notice 2006–24], or if the IRS does not issue a certification for the Project under Notice
2006–24, the qualifying advanced coal project credit in the amount of $[insert the number in WHEREAS clause #3] allocated to
the Project is fully forfeited.
3. If the Project is not placed in service by Taxpayer within 5 years of the date of issuance of the certification as determined under
section 6.03 of Notice 2006–24, the qualifying advanced coal project credit in the amount of $[insert the number in WHEREAS
clause #3] allocated to the Project is fully forfeited.
4. If the Project does not have a total nameplate generating capacity of [insert the number in WHEREAS clause #2(4)] megawatts
on the date the Project is placed in service, the qualifying advanced coal project credit in the amount of $[insert the number in
WHEREAS clause #3] allocated to the Project is reduced proportionately.
[If the Project is not an integrated gasification combined cycle project, insert:
5. If the Project fails to satisfy any of the requirements in § 48A(e)(1) for a qualifying advanced coal project—

2006–11 I.R.B.

600

March 13, 2006

(1) at the time the Project is placed in service, the qualifying advanced coal project credit in the amount of $[insert the number
in WHEREAS clause #3] allocated to the Project is fully forfeited; and
(2) after the Project is placed in service (and after satisfying all such requirements at the time the Project is placed in service),
the Project ceases to be investment credit property and the recapture rules of § 50(a) apply.]
[If the Project is an integrated gasification combined cycle project, insert:
5. (1) If the Project fails to satisfy any of the requirements in § 48A(e)(1) for a qualifying advanced coal project—
(a) at the time the Project is placed in service, the qualifying advanced coal project credit in the amount of $[insert the
number in WHEREAS clause #3] allocated to the Project is fully forfeited; and
(b) after the Project is placed in service (and after satisfying all such requirements at the time the Project is placed in
service), the Project ceases to be investment credit property and the recapture rules of § 50(a) apply.
(2) If at any time more than 50 percent of the cumulative total fuel input (coal and any other fuel input) for the Project is not
[insert the primary feedstock in WHEREAS clause #2(5)], the Project ceases to be investment credit property and the recapture
rules of § 50(a) apply.
(3) If the Project fails to provide [insert priority benefits in WHEREAS clause #2(6)] at the time the Project is placed in
service, the qualifying advanced coal project credit in the amount of $[insert the number in WHEREAS clause #3] allocated to the
Project is fully forfeited.]
6. Taxpayer will not claim the qualifying gasification project credit under § 48B for any qualified investment for which the
qualifying advanced coal project credit is allowed under § 48A.
7. If Taxpayer elects to claim the qualifying advanced coal project credit on the qualified progress expenditures paid or incurred
by Taxpayer during the taxable year for construction of a qualifying advanced coal project, rules similar to the recapture rules in
§ 50(a)(2)(A) through (D) apply.
8. This agreement applies only to Taxpayer. Any successor in interest must execute a new closing agreement with the IRS. If the
interest is acquired at or before the time the Project is placed in service and the successor in interest fails to execute a new closing
agreement, the qualifying advanced coal project credit in the amount of $[insert the number in WHEREAS clause #3] allocated to
the Project is fully forfeited. If the interest is acquired after the time the Project is placed in service and the successor in interest fails
to execute a new closing agreement, the Project ceases to be investment credit property and the recapture rules of § 50(a) apply.
THIS AGREEMENT IS FINAL AND CONCLUSIVE EXCEPT:
1. The matter it relates to may be reopened in the event of fraud, malfeasance, or misrepresentation of a material fact;
2. It is subject to the Internal Revenue Code sections that expressly provide that effect be given to their provisions (including
any stated exception for § 7122) notwithstanding any law or rule of law; and
3. If it relates to a tax period ending after the date of this Closing Agreement, it is subject to any law enacted after such date,
which applies to the tax period.
By signing, the parties certify that they have read and agreed to the terms of this Closing Agreement.
Taxpayer: [insert name and identifying number]
By:

Date Signed:
[insert name]

Title: [insert title]
[insert taxpayer’s name]

March 13, 2006

601

2006–11 I.R.B.

Commissioner of Internal Revenue
By:

Date Signed:
[insert name]

Title: Associate Chief Counsel, Passthroughs and Special Industries, CC:PSI

I have examined the specific matters involved and recommend the acceptance of the proposed agreement.
(Receiving Officer)
(Title)
Date Signed
I have reviewed the specific matters involved and recommend the acceptance of the proposed agreement.
(Reviewing Officer)
(Title)
Date Signed

2006–11 I.R.B.

602

March 13, 2006

APPENDIX B
APPLICATION FOR DOE CERTIFICATION
REQUEST FOR SUPPLEMENTAL APPLICATION INFORMATION FOR DOE
Pursuant to Notice 2006–24 establishing the Qualifying Advanced Coal Project Program, the Internal Revenue Service (“IRS”)
will allocate a credit under § 48A of the Internal Revenue Code to a project only if, among other things, the IRS receives from the
Department of Energy (“DOE”) a certification of feasibility and consistency with energy policy goals (“DOE certification”) for
the project. This DOE certification shall assure that the applications selected meet the requirements of § 48A and the intent of
§ 48A to provide credits to projects that are both technically and economically feasible.
The IRS and DOE seek to certify applications that demonstrate a high likelihood of being successfully implemented by the
applicants. To qualify, projects must be economically feasible and use the appropriate clean coal technology.
This request for submission of supplemental application information:
1. Describes the information to be provided by the applicant seeking a DOE certification, and
2. Lists the evaluation criteria, and Program Policy Factors to be used by DOE in the evaluation of applications.
In conducting this evaluation, the DOE may utilize assistance and advice from qualified personnel from other Federal agencies
and/or non-conflicted contractors. DOE will obtain assurances in advance from all evaluators that application information shall be
kept confidential and used only for evaluation purposes. DOE reserves the right to request clarifications and/or supplemental
information from some or all applicants through written submissions and/or oral presentations.
Notice is given that DOE may determine whether or not to provide a DOE certification to the IRS at any time after the application
has been received, without further exchanges or discussions. Therefore, all applicants are advised to submit their most complete
and responsive application.
Applications will not be returned.
SUBMISSION INFORMATION FOR DOE CERTIFICATION APPLICATION
A. General
This request, together with the information in sections 5.02, 7.01, and 7.02 of Notice 2006–24 includes all the information needed
to complete an application for DOE certification. All applications shall be prepared in accordance with this request in order to
provide a standard basis for evaluation and to ensure that each application will be uniform as to format and sequence.
Each application should clearly demonstrate the applicant’s capability, knowledge, and experience in regard to the requirements
described herein.
Applicants should fully address the requirements of Notice 2006–24 and this request and not rely on the presumed background
knowledge of reviewers. DOE may reject an application that does not follow the instructions regarding the organization and
content of the application when the nature of the deviation and/or omission precludes meaningful review of the application.
B. Unnecessarily Elaborate Applications
Unnecessarily elaborate brochures or other presentations beyond those sufficient to present a complete and effective application
are not desired. Elaborate art work, graphics and pictures are neither required nor encouraged.
C. Application Submission for DOE Certification
The application submission to DOE must include the information and documentation required by sections 5.02, 7.01, and 7.02
of Notice 2006–24.
A project will not be considered in the allocation round conducted in a calendar year unless the application for DOE certification
of the project is postmarked by June 30 of that calendar year. Two paper copies and one electronic version on a floppy disc or a
CD of the Application must be submitted to:
Melissa Robe
National Energy Technology Laboratory
3610 Collins Ferry Road
Morgantown, WV 26507

March 13, 2006

603

2006–11 I.R.B.

Note that under section 5 of Notice 2006–24, one paper copy must be sent to the IRS as part of the application for IRS certification.
The project will not be considered in the allocation round conducted in a calendar year unless the application is submitted to the
IRS by the date specified for that calendar year in section 4.02(8) of Notice 2006–24.
THE INFORMATION REQUIRED BY THIS REQUEST MUST BE SUBMITTED USING THE FORMAT AND THE
HEADINGS OF THE “PROJECT INFORMATION MEMORANDUM” AS DESCRIBED BELOW.
To aid in evaluation, applications shall be clearly and concisely written and logically assembled. All pages of each part shall be
appropriately numbered and identified with the name of the applicant and the date.
The application, including the Project Information Memorandum, MUST be formatted in one of the following software
applications:
Microsoft Wordtm 2002 or later edition
Microsoft Exceltm 2002 or later edition
Adobe Acrobattm PDF 6.0 or later edition
Financial models should be submitted using the Exceltm spreadsheet and must include calculation formulas and assumptions.
The applicant is responsible for the integrity and structure of the electronic files. The DOE will not be responsible for
reformatting, restructuring or converting any files submitted under this announcement.
The Project Information Memorandum, excluding Appendices, shall not exceed seventy-five (75) pages. Pages in excess of the
page limitation will not be considered for evaluation. All text shall be typed, single spaced, using 12 point font, 1 inch margins,
and unreduced 8-1/2-inch by 11-inch pages. Illustrations and charts shall be legible with all text in legible font. Pages shall be
sequentially numbered. Except as otherwise noted herein the page guidelines previously set forth constitute a limitation on the
total amount of material that may be submitted for evaluation. No material may be incorporated in any application by reference
as a means to circumvent the page limitation.
D. Form of Project Information Memorandum
PROJECT INFORMATION MEMORANDUM
I. SUMMARY AND INTRODUCTION

•
•
•
•

Description of the Project
Financing and Ownership Structure
Describe the main parties to the project, including background, ownership and related experience
Current Project Status and Schedule to Beginning of Construction

II. TECHNOLOGY AND TECHNICAL INFORMATION
Provide a description of the proposed technology, including sufficient supporting information (such as process flow
diagrams, equipment descriptions, information on each major process unit and the total plant, compositions of major
streams, and the technical plan for achieving the goals proposed for the project) as would be needed to allow DOE to
confirm that the technical requirements of § 48A could, in principle, be met. Specifically the applicant should:

2006–11 I.R.B.

604

March 13, 2006

•

Provide evidence sufficient to demonstrate that the proposed technology meets the definition of “Advanced Coal-Based
Generation Technology,” either as integrated gasification combined cycle (IGCC) technology, or other advanced coalbased electric generation technology meeting the heat rate requirement of 8530 Btu/kWh

•
•
•

For projects including existing units, the applicant must provide information sufficient to justify that the proposed
technology meets heat rate requirements specified in § 48A(f)(3)

Provide evidence sufficient to ensure that the proposed project is designed to meet the following performance requirements:

•
•
•
•
•

The applicant must provide actual heat rate and heat rate corrected to conditions specified in § 48A(f)(2)

SO2 percent removal........ 99 percent
NOx emissions..................0.07 lbs / MMBTU
PM emissions....................0.015 lbs / MMBTU
Hg percent removal.......... 90 percent

Provide evidence sufficient to demonstrate that the project meets the requirements for qualifying advanced coal projects
as specified under § 48A(e)(1) including:

•

The project will power a new electric generation unit or retrofit/repower an existing electric generation unit. At least
50% of the useful output of the project is electrical power.

•
•

The fuel for the project is at least 75% coal (as defined in § 48A(c)(4)), on an energy input basis.
The project is located at one site and has a total nameplate electric power generating capacity of at least 400 MW.

•

Provide information and data, including examples of prior similar projects completed by applicant, EPC contractor, and
suppliers of major subsystems or equipment which support the capabilities of the applicant to construct and operate the
facility.

•

Include the project status and relevant information from ongoing engineering activities. Also include in an appendix any
engineering report or reports used by the applicant to develop the project and to estimate costs and operating performance.

III. PRIORITY FOR INTEGRATED GASIFICATION COMBINED CYCLE PROJECTS
For IGCC Projects, the applicant must submit information sufficient for categorization and prioritization of projects
for certification, including:

•
•

Identification of the primary feedstock (as defined in section 5.02(5) of Notice 2006–24), and all other feedstocks.

•
•

A plan showing how project by-products will be marketed and utilized.

If applicable, evidence demonstrating that the project will be capable of adding components that can capture, separate
and permanently sequester greenhouse gases.

Other benefits, if any.

IV. SITE CONTROL AND OWNERSHIP

•

Provide evidence that the applicant owns or controls a site in the United States of sufficient size to allow the proposed
project to be constructed and operated on a long-term basis.

•
•

Describe the current infrastructure at the site available to meet the needs of the project.
Provide information supporting applicant’s conclusion that the proposed site can fully meet all environmental, coal supply, water supply, transmission interconnect, and public policy requirements.

March 13, 2006

605

2006–11 I.R.B.

V. UTILIZATION OF PROJECT OUTPUT

•
•
•

A projection of the anticipated costs of electricity and other marketable by-products produced by the plant.

•

Include as an appendix any independent Energy Price Market Study that has been done in connection with this project,
or if no independent market study has been completed, provide a copy of the applicant-prepared market study.

•

Identify and describe any firm arrangements to sell non-power output, and provide any evidence of such arrangements. If
the project produces a product in addition to power, include as an appendix any related market study of price and volume
of sales expected for that product.

Provide evidence that a majority of the output of the plant is reasonably expected to be acquired or utilized.
Describe any energy sales arrangements that exist or that may be contemplated, e.g., Power Purchase Agreement or
Energy Sales Agreement, and summaries of their key terms and conditions.

VI. PROJECT ECONOMICS
Describe the project economics and provide satisfactory evidence of economic feasibility as demonstrated through the
financial forecast and the underlying project assumptions.
Discuss the market potential for the proposed technology beyond the project proposed by the applicant.
Show calculation of the amount of tax credit applied for based on allowable cost.
VII. PROJECT DEVELOPMENT AND FINANCIAL PLAN
Provide the total project budget and major plant costs, e.g., development, operating, capital, construction, and financing
costs. Describe the overall approach to project development and financing sufficient to demonstrate project viability.
Provide a complete explanation of the source and amount of project equity. Provide a complete explanation of the source
and amount of project debt. Provide the audited financial statements for the applicant for the most recently ended three
fiscal years, and the unaudited quarterly interim financial statements for the current fiscal year.
For internally financed projects, provide evidence that the applicant has sufficient assets to fund the project with its own
resources. Identify any internal approvals required to commit such assets. Include in an appendix copies of any board
resolution or other approval authorizing the applicant to commit funds and proceed with the project.
For projects financed through debt instruments either unsecured or secured by assets other than the project, provide
evidence that the applicant has sufficient creditworthiness to obtain such financing along with a discussion of the status of
such instruments. Identify any internal approvals required to commit the applicant to pursue such financing. Include in an
appendix, copies of any board resolution or other approval authorizing the applicant to commit to such financing.
For projects financed through investor equity contributions, discuss the source and status of each contribution. Discuss
each investor’s financial capability to meet its commitments. Include in an appendix, copies of any executed investment
agreements.
If financing through a public offering or private placement of either debt or equity is planned for the project, provide the
expected debt rating for the issue and an explanation of applicant’s justification for the rating. Describe the status of any
discussions with prospective investment bankers or other financial advisors.
For projects employing nonrecourse debt financing, provide a complete discussion of the approach to, and status of,
such financing.
In an appendix, provide (1) an Excel based financial model of the project, with formulas, so that review of the model
calculations and assumptions may be facilitated; provide pro-forma project financial, economic, capital cost, and operating
assumptions, including detail of all project capital costs, development costs, interest during construction, transmission
interconnection costs, other operating expenses, and all other costs and expenses, and (2) a report of an independent
financial analyst in accordance with the instructions in Section G of this Appendix B.
VIII. PROJECT CONTRACT STRUCTURE
Describe the current status of each of the agreements set forth below. Include as an appendix copies of the contracts or
summaries of the key provisions of each of the following agreements:

2006–11 I.R.B.

606

March 13, 2006

•
•

Power Purchase Agreement (if not fully explained in Section IV)

•
•

Coal transportation: explain the arrangements for transporting coal, including costs.

•
•

Shareholders Agreement: summarize key terms and include the agreement as an appendix.

•
•

Water Supply Agreement: confirm the amount, source, and cost of water supply.

Coal Supply: describe the source and price of coal supply for the project. Include as an appendix any studies of coal
supply price and amount that have been prepared. Include a summary of the coal supply contract and a copy of the
contract.

Operations & Maintenance Agreement: include a summary of the terms and conditions of the contract and a copy of the
contract.

Engineering, Procurement and Construction Agreement: describe the key terms of the existing or expected EPC contract
arrangement, including firm price, liquidated damages, hold-backs, performance guarantees, etc.

Transmission interconnection agreement: explain the requirements to connect to the system and the current status of
negotiations in this respect.

IX. PERMITS INCLUDING EVIRONMENTAL AUTHORIZATIONS

•

Provide a complete list of all federal, state, and local permits, including environmental authorizations or reviews, necessary to commence construction of the project.

•
•

Explain what actions have been taken to date to satisfy the required authorizations and reviews, and the status of each.
Provide a description of the applicant’s plan to obtain and complete all necessary permits, and environmental authorizations and reviews.

X. STEAM TURBINE PURCHASE

•

If applicant plans to purchase a steam turbine or turbines for the project, indicate the prospective vendors for the turbine
and explain the current status of purchase negotiations, and provide a timeline for negotiation and purchase with expected
purchase date.

XI. PROJECT SCHEDULE

•

Provide an overall project schedule which includes technical, business, financial, permitting and other factors to substantiate that the project will meet the 2 year project certification and 5 year placed-in-service requirement.

March 13, 2006

607

2006–11 I.R.B.

APPENDICES

•
•
•

Independent Financial Report.
Copy of internal or external engineering reports.
Copy of site plan, together with evidence that applicant owns or controls a site. Examples of evidence would include a
deed, or an executed contract to purchase or lease the site.

•

Information supporting applicant’s conclusion that the site is fully acceptable as the project site with respect to environment, coal supply, water supply, transmission interconnect, and public policy reasons.

•
•
•
•
•

Power Purchase or Energy Sales Agreement.

•
•

For each project contract, if no contract currently exists, provide a summary of the expected terms and conditions.

•

If an appendix listed above is not provided, include in its place a complete explanation of the reasons for the omission.

Energy Market Study.
Market Study for non-power output.
Financial Model of project.
Audited financial statements for the applicant for the most recently ended three fiscal years, and the unaudited quarterly
interim financial statements for the current fiscal year.

List of all federal, state, and local permits, including environmental authorizations or reviews, necessary to commence
construction.

E. Evaluation Criteria:
Advanced coal projects: will be evaluated on whether they meet all the requirements of § 48A.
Technical: will be evaluated on whether the applicant has demonstrated the capability to accomplish the technical objectives.
Site: will be evaluated on the basis that the site requirement for ownership or control has been met, and that the site is suitable for
the proposed project.
Economic: will be evaluated on whether the project has demonstrated economic feasibility, taking into consideration the submitted
financial and project development and structural information and financial plan.
Schedule: will be evaluated on the applicant’s ability to meet the 2 year project certification and the 5 year placed-in-service
requirement.
F. Program Policy Factors to be used by DOE in the evaluation of applications and a description of how they will be applied.
These factors, while not indicators of the applicant’s merit, e.g., technical excellence, cost, applicant’s ability, etc., may be
essential to the process of selecting the application(s) that, individually or collectively, will best achieve the objectives of the
authorizing legislation. Such factors are often beyond the control of the applicant. Applicants should recognize that some very
good applications may not receive selection for certification because they do not fit within a mix of projects and technologies
that maximize the probability of achieving the overall objective of deployment of advanced coal-based generation technology.
Therefore, the following Program Policy Factors may be used individually or collectively by DOE following application of
evaluation criteria to determine which of the applications shall receive certification by DOE.

•
•
•

Diversity of technology approaches and methods
Geographic distribution of potential markets
Presentation of unique environmental, economic, or performance benefits

2006–11 I.R.B.

608

March 13, 2006

G. Instructions for independent financial reports
The applicant shall provide an independent report by a qualified Independent Financial Analyst (such as a bank, investment
bank, or other independent financial advisory firm). In the report, the Independent Financial Analyst shall describe qualifications
and experience that establish the Analyst’s competence to evaluate project financing for projects similar in scope and size to
the Applicant’s project. The Independent Financial Analyst shall provide a thorough, independent review of the Applicant’s
approach to project financing. The report shall include the opinion of the Independent Financial Analyst as to the Applicant’s
likelihood to achieve financial closure in accordance with the Applicant’s financing plan.
Required Certification by Independent Financial Analyst:
The report shall be certified by the Independent Financial Analyst, who shall (a) acknowledge that the report has been
prepared for submission to the Department of Energy as a part of an application by applicant for an investment credit,
and (b) certify that the Independent Financial Analyst has no obligation to the applicant and has acted to the best of its
ability as an independent expert.
At a minimum, the Independent Financial Analyst shall:

•
•
•
•
•
•
•
•
•

Review the financial model.
Review the project financial assumptions, including economic, capital costs, operating assumptions, and all project development costs.
Review the financial calculations, including rates of return and coverage ratios.
Confirm the calculation of the amount of the tax credit applied for.
Review the project development cost budget.
Review and comment on the source of funding and evidence of funding.
Review and comment on project debt and equity sources.
Confirm that the application includes the required financial reports and debt ratings.
Describe and comment on the capabilities of the applicant to provide the required financing for the project, and the
likelihood of obtaining financing from a source other than the applicant, if such financing is required by the project.

Qualifying Gasification Project
Program
Notice 2006–25
SECTION 1. PURPOSE
This notice establishes the qualifying gasification project program under
§ 48B(d) of the Internal Revenue Code.
The purpose of this program is to consider
and award certifications for qualified investment eligible for credits under § 48B
to qualifying gasification project sponsors.
SECTION 2. BACKGROUND
.01 Section 46 provides that the amount
of the investment credit for any taxable
year is the sum of the credits listed in § 46.
Section 1307(a) of the Energy Policy Act

March 13, 2006

of 2005, Pub. L. 109–58, 119 Stat. 594
(August 8, 2005) (the “Act”), amended
§ 46 to add two new credits to that list:
the qualifying advanced coal project credit
and the qualifying gasification project
credit.
.02 The qualifying gasification project
credit is provided under § 48B, as added
by § 1307(b) of the Act. Section 48B(a)
provides that the qualifying gasification
project credit for a taxable year is an
amount equal to 20 percent of the qualified investment (as defined in § 48B(b))
for that taxable year in qualifying gasification projects. Pursuant to § 48B(d)(1),
the aggregate amount of credits allocated
to all qualifying gasification projects may
not exceed $350 million.
.03 The term “qualifying gasification project” is defined in § 48B(c)(1)
as meaning any project that (A) employs
gasification technology, (B) will be carried out by an eligible entity (as defined

609

in § 48B(c)(7)), and (C) includes a qualified investment of which an amount not
to exceed $650 million is certified under
the qualifying gasification program as
eligible for credit under § 48B. Pursuant
to § 48B(c)(2), gasification technology
is any process that converts a solid or
liquid product from coal (as defined in
§ 48B(c)(6)), petroleum residue (as defined in § 48B(c)(8)), biomass (as defined
in § 48B(c)(4)), or other materials that are
recovered for their energy or feedstock
value into a synthesis gas composed primarily of carbon monoxide and hydrogen
for direct use or subsequent chemical or
physical conversion.
.04 The qualifying gasification project
credit generally is allowed in the taxable
year in which the eligible property (as defined in § 48B(c)(3)) is placed in service
by the taxpayer. Further, the at-risk rules
in § 49 and the recapture and other special

2006–11 I.R.B.