Qualifying Gasification Project Credit

§ 48B. Qualifying gasification project credit(a) In generalFor purposes of section 46, the qualifying gasification project credit for any taxable year is an amount equal to 20 percent (30 percent in the case of credits allocated under subsection (d)(1)(B)) of the qualified investment for such taxable year. (b) Qualified investment(1) In generalFor purposes of subsection (a), the qualified investment for any taxable year is the basis of eligible property placed in service by the taxpayer during such taxable year which is part of a qualifying gasification project—(A)(i) the construction, reconstruction, or erection of which is completed by the taxpayer, or (ii) which is acquired by the taxpayer if the original use of such property commences with the taxpayer, and (B) with respect to which depreciation (or amortization in lieu of depreciation) is allowable. (2) Special rule for certain subsidized propertyRules similar to section 48(a)(4) (without regard to subparagraph (D) thereof) shall apply for purposes of this section. (3) Certain qualified progress expenditures rules made applicableRules similar to the rules of subsections (c)(4) and (d) of section 46 (as in effect on the day before the enactment of the Revenue Reconciliation Act of 1990) shall apply for purposes of this section. (c) DefinitionsFor purposes of this section—(1) Qualifying gasification projectThe term “qualifying gasification project” means any project which—(A) employs gasification technology, (B) will be carried out by an eligible entity, and (C) any portion of the qualified investment of which is certified under the qualifying gasification program as eligible for credit under this section in an amount (not to exceed $650,000,000) determined by the Secretary. (2) Gasification technologyThe term “gasification technology” means any process which converts a solid or liquid product from coal, petroleum residue, biomass, or other materials which 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. (3) Eligible propertyThe term “eligible property” means any property which is a part of a qualifying gasification project and is necessary for the gasification technology of such project. (4) Biomass(A) In generalThe term “biomass” means any—(i) agricultural or plant waste, (ii) byproduct of wood or paper mill operations, including lignin in spent pulping liquors, and (iii) other products of forestry maintenance. (B) ExclusionThe term “biomass” does not include paper which is commonly recycled.