SECTION 4. DEFINITIONS

The following definitions apply for purposes of § 48C and this notice:

.01 Qualifying Advanced Energy Project . A qualifying advanced energy project is a project that meets the following requirements:

(1) the project re-equips, expands or establishes a manufacturing facility (as defined in section 4.05 of this notice) for the production of specified advanced energy property or property that, after further manufacture, will become specified advanced energy property;

(2) the Service has certified pursuant to § 48C(d)(2) that part or all of the qualified

investment in the project is eligible for a credit under § 48C; and

(3) the project does not produce any property which is used in the refining or blending of any transportation fuel (other than renewable fuels) ( i.e., a qualifying advanced energy project can produce property which is used in the refining or blending of any transportation fuel only if the property is used solely in the refining or blending of transportation fuels that are renewable fuels).

.02 Specified Advanced Energy Prop- erty . Specified advanced energy property means any of the following:

(1) property designed for use in the production of energy from the sun, wind, geothermal deposits (within the meaning of § 613(e)(2)), or other renewable resources;

(2) fuel cells, microturbines, or an energy storage system for use with electric or hybrid-electric motor vehicles;

(3) electric grids to support the transmission of intermittent sources of renewable energy, including property for the storage of such energy;

(4) property designed to capture and sequester carbon dioxide and sequester carbon dioxide emissions;

(5) property designed to refine or blend renewable fuels (but not fossil fuels) or to produce energy conservation technologies (including energy-conserving lighting technologies and smart grid technologies);

(6) new plug-in electric drive motor vehicles (as defined by § 30D), qualified plug-in electric vehicles (as defined by § 30(d)), or components that are designed specifically for use with such vehicles, including electric motors, generators, and power control units or;

(7) other property designed to reduce greenhouse gas emissions as may be determined by the Service.

.03 Eligible Property . Eligible property is any property (other than a building or its structural components) that meets the following requirements:

(1) The property is necessary for the production of specified advanced energy property described in § 48C(c)(1)(A)(i) or section 4.02 of this notice.

(2) The property is: (a) tangible personal property; or

September 14, 2009 325 2009–37 I.R.B.

tion for certification submitted to the Service after August 13, 2009, and before December 17, 2009, will be deemed to be submitted by the taxpayer on December 16, 2009. (6) For the 2009–2010 allocation round, a preliminary application for DOE recommendation must be submitted by September 16, 2009. A final application for DOE recommendation must be submitted by October 16, 2009. If a final application for DOE recommendation is received on or before October 16, 2009, DOE will determine the feasibility of the project and (for projects determined to be feasible) provide the DOE recommendation to the Service by December 16, 2009. See section 6.02 of this notice and Appendix B to this notice for the information required to be submitted to DOE in an application for DOE recommendation. Also, see Appendix B to this notice for a discussion relating to the process for applying for DOE recommendation and the instructions and address for filing the preliminary and final applications for DOE recommendation.

(7) For purposes of determining the timeliness of submission of applications, § 7502 shall apply in determining the timeliness of any application for § 48C certification or DOE recommendation.

(8) For the 2009–2010 allocation round, the Service will accept or reject the taxpayer’s application for § 48C certification by January 15, 2010, and will notify the taxpayer, by letter, of its decision. If the application is accepted, the date of this letter will be treated as the acceptance date.

(9) If the taxpayer’s application for § 48C certification is accepted, the acceptance letter will state the amount of the credit allocated to the project. If a credit is allocated to a taxpayer’s project, the taxpayer will be required to execute an agreement in the form set forth in Appendix A to this notice. For credits allocated in the 2009–2010 allocation round, the taxpayer must execute and return the agreement to the Service by March 15, 2010, at the appropriate address listed in section 6.04 of this notice or listed in later guidance published in the Internal Revenue Bulletin. The Service will execute and return the agreement to the taxpayer by April 16, 2010. The executed agreement applies only to the taxpayer who signed the agreement. Any successor in

(b) other tangible property (not including a building or its structural components) that is used as an integral part of the qualifying advanced energy project.

(3) Depreciation (or amortization in lieu of depreciation) is allowable with respect to the property.

.04 Placed In Service . For purposes of § 48C, property is placed in service in the taxable year in which the property is placed in a condition or state of readiness and availability for a specifically assigned function. See § 1.46–3(d)(1)(ii) of the Income Tax Regulations. Thus, a qualifying advanced energy project is placed in service in the taxable year in which the project is placed in a condition or state of readiness and availability for its intended purpose. Eligible property (as defined in § 48C(c)(2)) that is a part of the project is placed in service in the taxable year in which the property is placed in a condition or state of readiness and availability for its intended purpose.

.05 Manufacturing Facilities . For purposes of § 48C, manufacturing facilities are facilities that make, or process raw materials into, finished products (or accomplish any intermediate stage in that process).

.06 Advanced Energy Property De- signed To Reduce Greenhouse Gas Emis- sions . The Secretary may determine that a property is designed to reduce greenhouse gas emissions in published guidance or in the letter notifying a taxpayer that the Service has accepted the taxpayer’s application for § 48C certification with respect to the property.