This announcement discloses the results of the 2011-12 allocation round under the qualifying advanced coal project program of § 48A of the Internal Revenue Code.
Section 48A provides a qualifying advanced coal project credit in an amount equal to (1) 20 percent of the qualified investment (as defined in § 48A(b)) for that taxable year in qualifying advanced coal projects (as defined in § 48A(c)(1) and (e)) described in § 48A(d)(3)(B)(i), (2) 15 percent of the qualified investment for that taxable year in qualified advanced coal projects described in § 48A(d)(3)(B)(ii), and (3) 30 percent of the qualified investment for that taxable year in qualifying advanced coal projects described in § 48A(d)(3)(B)(iii).
Section 48A(d)(5) provides that the Secretary shall, upon making a certification under § 48A(d) or § 48B(d), publicly disclose the identity of the applicant and the amount of the credit certified with respect to such applicant.
On April 20, 2009, the Internal Revenue Service (“Service”) issued Notice 2009-24, 2009-16 I.R.B 817, to announce an initial allocation round for the qualifying advanced coal projects described in § 48A(d)(3)(B)(iii) (“the Phase II advanced coal program”). The Service will certify $1.25 billion of credits to qualifying projects under the Phase II advanced coal program during the application period from March 13, 2009 to March 13, 2012, as provided by § 48A(d)(2)(A)(ii).
Section 10.01 of Notice 2009-24 provides that the Service intends to publish the results of the allocation process, and disclose the following information in the event a qualifying advanced coal project credit under § 48A is allocated to the taxpayer’s project: (a) the name of the taxpayer and (b) the amount of the qualifying advanced coal project credit allocated to the project.
On September 27, 2010, the Service issued Announcement 2010-56, 2010-39 I.R.B. 398, setting forth the results of the initial allocation round, and notifying applicants of a second allocation round in 2010-11.
On October 3, 2011, the Service issued Announcement 2011-62, 2011-40 I.R.B. 483, announcing that the second allocation round in 2010-11 did not result in any allocation of the qualifying advanced coal project credit, and notifying applicants of the Service’s intention to conduct a third allocation round in 2011-12 in the manner and under the procedures provided by Notice 2009-24, as modified by Notice 2011-24, 2011-14 I.R.B. 603.[1] As provided by Notice 2009-24, the application period for the 2011-12 allocation round began on March 2, 2011, and ended on March 1, 2012.
Accordingly, the results of the third allocation round in 2011-12 under the Phase II advanced coal program is as follows:
| Program | Taxpayer | Amount of Credit Awarded | Total Credit Awarded |
|---|---|---|---|
| § 48A | |||
| Hydrogen Energy California LLC | $103,564,000 | ||
| $103,564,000 |
The third allocation round in 2011-12 is the final allocation round under the Phase II advanced coal program.
The principal author of this announcement is Jennifer Bernardini of the Office of Associate Chief Counsel (Passthroughs & Special Industries). For further information regarding this announcement, contact Jennifer Bernardini at (202) 622-3110 (not a toll-free call).
[1] Notice 2011-24 updated the rules relating to the annual measurement of separated and sequestered carbon dioxide and applies the recapture rules of § 50(a) in the event that a taxpayer fails to attain or maintain the carbon dioxide separation and sequestration requirements of § 48A or § 48B.
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