SECTION 1. PURPOSE

This notice provides additional procedures for the allocation of credits under the qualifying advanced coal project program of § 48A of the Internal Revenue Code. The procedures in this notice apply only to the credits authorized under the amendments made to § 48A by section 111 of the Energy Improvement and Extension Act of 2008, Pub. L. 110–343, 122 Stat. 3765 (October 3, 2008) (“the Act”). Section 111 of the Act amended § 48A to provide for a second phase of the qualifying advanced coal project program in which $1.25 billion of additional credits are authorized (“the Phase II advanced coal program” and “the Phase II advanced coal credit”). To be considered in the first allocation round under the Phase II advanced coal 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Section 48A, as originally enacted, provided for the first phase of the qualifying advanced coal project program and authorized $1.3 billion of credits (“the Phase I advanced coal program” and “the Phase I advanced coal credit”). The Service intends to issue guidance in the future regarding any Phase I advanced coal credits that remain unallocated after the 2008–2009 allocation round or that are subsequently forfeited.