SECTION 1. PURPOSE

This notice provides additional procedures for the allocation of credits under the qualifying gasification project program of § 48B of the Internal Revenue Code. The procedures in this notice apply only to the credits authorized under the amendments made to § 48B by section 112 of the Energy Improvement and Extension Act of 2008, Pub. L. 110–343, 122 Stat. 3765 (October 3, 2008) (“the Act”). Section 112 of the Act amended § 48B to provide for a second phase of the qualifying gasification project program in which $250 million of additional credits are authorized (“the Phase II gasification program” and “the Phase II gasification credit”). To be considered in the first allocation round under the Phase II gasification program, applications must be submitted to the Department of Energy (“DOE”) on or before November 2, 2009, and to the Internal Revenue Service (“Service”) before March 2, 2010. See section 5 of this notice for additional rules regarding these applications.

Section 48B, as originally enacted, provided for the first phase of the qualifying gasification project program and authorized $350 million of credits (“the Phase I gasification program” and “the Phase I gasification credit”). The Service intends to issue guidance in the future regarding any Phase I gasification credits that are subsequently forfeited.