I 112th CONGRESS 1st Session H. R. 2223 IN THE HOUSE OF REPRESENTATIVES June 16, 2011 Mr. Gerlach (for himself, Mr. Doyle, Mr. Murphy of Pennsylvania, Mr. Shuster, Mrs. Capito, Mr. Holden, and Mr. McKinley) introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to extend and modify the section 45 credit for refined coal from steel industry fuel, and for other purposes.

1.

Short title

This Act may be cited as the Steel Industry Support Act of 2011.

2.

Extension and modification of credit for steel industry fuel

(a)

Credit period

(1)

In general

Subclause (II) of section 45(e)(8)(D)(ii) of the Internal Revenue Code of 1986 is amended to read as follows: (II)

Credit period

In lieu of the 10-year period referred to in clauses (i) and (ii)(II) of subparagraph (A), the credit period shall be the period beginning on the date that the facility first produces steel industry fuel that is sold to an unrelated person after September 30, 2008, and ending 10 years after such date. . (2)

Conforming amendment

Section 45(e)(8)(D) of such Code is amended by striking clause (iii) and by redesignating clause (iv) as clause (iii). (b)

Extension of placed-in-Service date

Subparagraph (A) of section 45(d)(8) of the Internal Revenue Code of 1986 is amended— (1)by striking (or any modification to a facility); and (2)by striking January 1, 2010 and inserting July 1, 2012. (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 , 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 payments from the owner of such facility is measured 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 selling 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 customer. . (d)

Specified credit for purposes of alternative minimum tax exclusion

Subclause (II) of section 38(c)(4)(B)(iii) of the Internal Revenue Code of 1986 is amended by inserting (in the case of a refined coal production facility producing steel industry fuel, during the credit period set forth in section 45(e)(8)(D)(ii)(II)) after service. (e)

Effective dates

(1)

In general

The amendments made by subsections (a), (b), and (d) shall apply to fuel produced and sold after September 30, 2008. (2)

Clarifications

The amendments made by subsection (c) shall take effect as if included in the amendments made by the Energy Improvement and Extension Act of 2008.