1.Modification of definition of
refined coal
(a)
(1)Subparagraph (A) of section 45(c)(7) of the Internal
Revenue Code of 1986 is amended by inserting and
at the end of
clause (ii), by striking clauses (iii) and (iv), and by inserting after clause
(ii) the following new clause:
(iii)meets the
requirements of either clause (i) or (ii) of subparagraph
(B).
.
(2)Section
45(c)(7) of such Code is amended by redesignating subparagraph (B) as
subparagraph (C) and inserting after subparagraph (A) the following new
subparagraph:
(B)
(i)Certification
of qualified emission reductionA fuel meets the requirements of
this clause if such fuel is certified by the taxpayer as resulting (when used
in the production of steam) in a qualified emission reduction.
(ii)Reduced
emission reduction and market value requirementsA fuel meets the
requirements of this clause if such fuel—
(I)is certified by
the taxpayer as resulting (when used in the production of steam) in a qualified
emission reduction (determined by substituting 20 percent
for
40 percent
in subparagraph (C)), and
(II)is produced in
such a manner as to result in an increase of at least 50 percent in the market
value of the refined coal (excluding any increase caused by materials combined
or added during the production process), as compared to the value of the
feedstock
coal.
.
(3)Modification of
qualified emissions reductionSubparagraph (C) of section
45(c)(7) of such Code, as redesignated by paragraph (2), is amended by
inserting at least 40 percent of the emissions of
after
nitrogen oxide and
.
(b)The amendments made by
this section shall apply to coal produced and sold after the date of the
enactment of the Act.