Country:United States
Policy status:In Force
Date Effective:2006
Date Ended:2025
Policy Type:Economic Instruments>Fiscal/financial incentives>Tax relief, Economic Instruments>Fiscal/financial incentives>Taxes
Policy Target:Industry, Energy Sector>Electricity Generation
Agency:Department of Treasury, Internal Revenue Service (IRS)
Legal References:Energy Improvement and Extension Act of 2008 (Div. B, Title I, Subtitle B, Sec. 111-112)

Clean Coal Facility Tax Credit (Advanced Coal Project Investment Credit, 26 U.S.C. 48A) encourages investments in clean coal facilities producing electricity. Credit amount is 20% for integrated gasification combined cycle (IGCC) projects and 15% for other advanced coal-based projects that produce electricity. The incentive also encourages investment in clean coal gasification projects (Qualifying Gasification Project Credit, 26 U.S.C. 48B) for industry (non power-producing uses) for which the credit is 20-30%.

The Energy Improvement and Extension Act of 2008 allocated an additional $1.25 billion in 48A tax credits for IGCC and ACBGT projects and an additional $250 million in 48B tax credits for qualified gasification projects. The tax credit rate for all qualified clean coal investments was increased to 30% and the minimum CO2 capture percentage was raised to 70% for qualifying 48A advanced coal projects and 75% for qualifying 48B projects. Tax credits for qualifying 48B projects must be allocated before October 1, 2015.

Last modified: Thu, 16 Feb 2017 19:58:59 CET