SECTION 1. PURPOSE

This notice updates and amplifies the procedures for the allocation of credits under the qualifying advanced coal project program of § 48A of the Internal Revenue Code. Except as specifically provided in this notice, the allocation round for 2008–09 will be conducted in the same manner and under the same procedures as provided under Notice 2007–52 (including Appendices A, B, and C), 2007–26 I.R.B. 1456. To be considered in the allocation round for 2008–09, applications must be submitted to the Department of Energy (DOE) on or before October 31, 2008, and to the Internal Revenue Service (Service) on or before March 2, 2009. See section 3 of this notice for additional rules regarding applications for § 48A and the DOE certification.

This notice does not reflect amendments made by the Energy Improvement and Extension Act of 2008, which expanded and modified the advanced coal project credit. The Service intends to issue guidance on these amendments in the near future.

Code so long as the additional tax is paid not later than one year after the filing of the amended return.

FILING PROCEDURE

Required form. Taxpayers should use Form 1040X, Amended U.S. Individual In- come Tax Return, to adjust a previously taken casualty loss. The amended return must be filed for the tax year in which a prior casualty loss was claimed and must reduce (but not below zero) the casualty loss deduction by the amount of the grant received as reimbursement for the loss.

Where to file. Form 1040X should be filed with the Austin Campus. Mail properly labeled forms to:

Department of the Treasury Internal Revenue Service Center Austin, TX 73301–0255

Label. To ensure proper processing consistent with this notice, taxpayers must identify amended returns as being filed under the terms of this notice. Label the top of the Form 1040X: “Hurricane Grant Relief” in dark, bold letters.

Materials to be submitted with the amended return. Taxpayers must include the following materials with their amended returns:

1. Proof of the amount of any hurricane relief grant received;

2. A completed Form 2848, Power of Attorney and Declaration of Representa- tive, if a taxpayer wishes to designate a representative.

Time for filing. An amended return pursuant to this notice must be filed by the later of the due date for the return for the year in which the hurricane relief grant was received, as extended, or July 30, 2009. Solely for purposes of determining eligibility for the waiver of penalties and interest for purposes of section 3082, the Service will treat any amended return filed before July 30, 2009, as filed on July 30, 2009. Payment of balance due. To avoid interest and penalties, payment of the balance due on the amended return must be made within one year of the timely filing of the amended return. Payments made subsequent to the filing of the amended return should clearly designate that the payment is to be applied to reduce the balance due as reflected on the amended return per this

notice. The Service will not take action to collect the balance due reflected on the amended return for the one year period following the filing of the amended return.

Assessment of balance due. Upon the filing of an amended return, the Service immediately will assess the balance due resulting from the reduction in the casualty loss claimed. This assessment will be reflected on the taxpayer’s accounts as an outstanding liability.

Limitations. No other adjustments may be taken on the amended return filed for purposes of this notice unless the period of limitation for making an assessment under section 6501 is open for the tax year without regard to section 3082(a).

SPECIAL RULE FOR PREVIOUSLY FILED AMENDED RETURNS

If a taxpayer previously filed an amended return for the casualty loss year that reduced the previously claimed casualty loss deduction by the grant amount or reported any of the grant amount as income, the taxpayer must notify the Service to receive the benefits provided by this notice. The taxpayer must send a copy of the previously filed Form 1040X, or submit a Form 843, to the address listed above. The Form 1040X or Form 843 should include the taxpayer’s own contact information as well as a properly executed power of attorney, if applicable. The taxpayer also must provide (1) copies of the original return for the year of the casualty loss deduction and any other amended returns for that year that were filed prior to publication of this notice, and (2) copies of the original return and amended returns, if any, for the year of receipt of the grant if any portion of the grant was previously reported as income in the year of receipt. These documents must be sent by the later of the due date for the return for the year in which the hurricane relief grant was received, as extended, or July 30, 2009. The Service will contact the taxpayer or the taxpayer’s representative, as appropriate, to discuss any necessary adjustments.

ADDITIONAL CONSIDERATIONS

The option to file an amended return is permissive. Taxpayers are not required to amend a prior year’s return and may, instead, include amounts received as a hurricane relief grant in gross income in the

November 3, 2008 1077 2008–44 I.R.B.

SECTION 3. 2008–09 ALLOCATION ROUND

.01 Except as otherwise specifically provided in this notice, this allocation round will be conducted in the same manner and under the same procedures as provided under Notice 2007–52 including Appendices B and C. This notice restates or references provisions in Notice 2007–52 as a convenience to taxpayers. The restatement or referencing of these provisions does not diminish the effect of provisions that are not restated or referenced.

.02 The qualifying advanced coal project credits of $1.3 billion and the applications for certification are separated into the following four pools:

(1) Projects using an advanced coal-based generation technology other than IGCC. The aggregate amount of qualifying advanced coal project credit for this pool is $500 million. The maximum amount of credits that will be allocated to a project is $125 million. In prior allocation rounds, $375 million of credits was allocated from this pool. Therefore, $125 million of credits is available for allocation from this pool in 2008–09.

(2) IGCC projects using bituminous coal as a primary feedstock. The aggregate amount of qualifying advanced coal project credit for this pool is $267 million. The maximum amount of credits that will be allocated to a project is $133.5 million. In prior allocation rounds, $267 million of credits was allocated from this pool. Accordingly, no allocation round for this pool will be conducted in 2008–09.

(3) IGCC projects using subbituminous coal as a primary feedstock. The aggregate amount of qualifying advanced coal project credit for this pool is $267 million. The maximum amount of credits that will be allocated to a project is $133.5 million. In prior allocation rounds, $133.5 million of credits were allocated from this pool. Therefore, $133.5 million of credits is available for allocation from this pool in 2008–09. (4) IGCC projects using lignite as a primary feedstock. The aggregate amount of qualifying advanced coal project credit for this pool is $266 million. The maximum amount of credits that will be allocated to a project is $133 million. In prior allocation rounds, $133 million of credits was al