CLIENT A LERT December 2009 Contacts IRS Issues Section 45 Guidance Regarding Refined Coal Facilities David S. Lowman, Jr. 1900 K Street, NW On December 7, 2009, the Internal 2009, the inflation adjustment factor is Washington, DC 20006-1109 Revenue Service (“IRS”) issued Notice 1.4171 and the resulting credit amount (202) 419-2070
[email protected] 2009-90 (the “Notice”), providing guid- is $6.20 per ton for calendar year 2009. ance relating to the tax credit under Laura Ellen Jones Section 45 of the Internal Revenue Code Section 4.01 of the Notice refers to Riverfront Plaza, East Tower (“Code”) for refined coal. Section 45 of this credit amount as the “tentative 951 East Byrd Street the Code provides a tax credit for the credit” and provides rules for a taxable Richmond, Virginia 23219-4074 production of refined coal at a refined year that is a calendar year and for a (804) 788-8746 taxable year that includes parts of two
[email protected] coal production facility during the 10-year period beginning on the date the facility calendar years. In the former case, the Timothy L. Jacobs was originally placed in service, and tentative credit for the taxable year is 1900 K Street, NW sold by the taxpayer to an unrelated the tentative credit for the calendar year. Washington, DC 20006-1109 person (defined in the same manner In the latter case, the tentative credit (202) 955-1669 as with respect to other Section 45 for the taxable year is the sum of the
[email protected] facilities) during such 10-year period.