Additional motivation for upgrading Ft. Union plant ASAPEvergreen has a lot of incentive to upgrade that Ft. Union plant before 12/31/08. How much incentive? How about an EXTRA $4.375 per ton (indexed for inflation) for a 10-year term.........
(see page 10 of document below)
https://dnr.louisiana.gov/sec/execdiv/techasmt/financial_incentives/incentives_list/federal_incentives_2008.pdf
Getting the IRS to favorably interpret this law has been a challenge in the past. I do however believe Evergreen has teamed up with their competitors to lobby Washington to make it happen:
https://www.precombustioncoal.org/
Who knows, maybe these guys are even lobbying Washington to extend the 12/31/08 deadline, so new domestic K-fuel plants can get in under the wire.....
......................................................................................
Federal Incentives and Laws
Renewable Electricity
Production Tax Credit
(PTC)
Incentive Type: Corporate tax credit
Applicable Sectors: Commercial
Authority 1: The Working Families Tax Relief Act of 2004 (H.R. 1308)
Authority 2: Energy Policy Act of 1992; 26 USC § 45
Authority 3: American Jobs Creation Act of 2004 (H.R. 4520) -- Sec. 710
Authority 4: Energy Policy Act of 2005 (Section 1301)
Authority 5: The Tax Relief and Health Care Act of 2006 (H.R. 6111)
Date Enacted: 1992; 12/31/2005; 10/4/2004; 10/22/2004; 8/8/2005; 12/20/2006
Termination Date: 12/31/2008
Amount: 2.0¢/kWh for wind, geothermal, closed-loop biomass; 1.0¢/kWh for other eligible
technologies. Applies to first 10 years of operation.
Maximum Amount:
Number of Systems
allowed:
12/31/2008 for refined coal; 12/31/2005 for others
Carryover Provisions: 1/1/2008 for renewables
Summary: The Renewable Electricity Production Credit (PTC) is a per kilowatt-hour tax credit for
electricity generated by qualified energy resources. Enacted as part of the Energy Policy
Act of 1992, the credit expired at the end of 2001, and was subsequently extended in
March 2002 as part of the Job Creation and Worker Assistance Act of 2002 (H.R. 3090).
The tax credit then expired at the end of 2003 and was not renewed until October 2004,
as part of H.R. 1308, the Working Families Tax Relief Act of 2004, which extended the
credit through December 31, 2005. The Energy Policy Act of 2005 (H.R. 6) modified the
credit and extended it through December 31, 2007. In December 2006, the credit was
extended for yet another year (through December 31, 2008) by Section 207 of the Tax
Relief and Health Care Act of 2006 (H.R. 6111).
Website: Form 8835, "Renewable Electricity Production Credit," and Form 3800, "General
Business Credit." IRS claim form:
https://www.irs.gov/pub/irs-pdf/f8835.pdf
Eligible Renewable/
Other Technologies:
Wind, closed loop biomass, open loop biomass, geothermal, landfill gas, muncipal solid
waste, small irrigation power (150 kW - 5 MW), hydro power, refined coal, Indian power
Other Critical
Information that varies
with each incentive
The REPC provides a tax credit of 1.5¢/kWh (in 1993 dollars and indexed for inflation)
for wind, closed-loop biomass and geothermal. Currently, the REPC for these
technologies is 2.0¢/kWh. Electricity from open-loop biomass, small irrigation
hydroelectric, landfill gas, municipal solid waste resources, and hydropower receive half
that rate -- currently 1.0¢/kWh. The duration of the credit is 10 years. Refined-coal
facilities will receive $4.375 per ton (indexed for inflation) for a 10-year term. Indian coal
production facilities will receive an increase in tax credit during the 7-year period
beginning January 1, 2006, in the amount of $1.50/ton through 2009, and $2.00/ton after
2009. Note, however, that owners of geothermal projects who claim the federal
business energy tax credit may not also claim the PTC.
H.R.6111 Tax Relief and Health Care Act of 2006 AS OF: 12/20/2006--Public Law.
SUMMARY
Division A: Extension and Expansion of Certain Tax Relief Provisions, and Other Tax
Provisions -
Title II: Energy Tax Provisions - (Sec. 201) Extends through 2008: Effective December
31, 2005
(1) the tax credit for electricity produced from certain renewable resources; `January 1,
2009'
(2) the tax credit for holders of clean renewable energy bonds;
(3) the tax deduction for energy efficient commercial buildings; `December 31, 2008
(4) the tax credit for new energy efficient homes; `December 31, 2008
(5) the tax credit for residential energy efficient property; (not included)
(6) the energy tax credit; `January 1, 2009
(7) special excise tax rates for qualified methanol and ethanol fuel.`January 1, 2009
(Sec. 203) Modifies provisions of the qualifying advanced coal project tax credit to
provide an alternate sulfur dioxide removal measurement for advanced coal-based
generation technology electric generation units.
(Sec. 209) Allows a special depreciation allowance for 50% of the adjusted basis of
cellulosic biomass ethanol plant property placed in service before January 1, 2013