S.Amdt. 971

1. Adds SEC. __. COALMINE GAS wherever appropriate

   Adds a section

   Inserted: SEC. __. COALMINE GAS.

   Inserted: (a) In General.--Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to business credits), as amended by this Act, is amended by adding at the end the following new section:

   Inserted: "SEC. 45O. CREDIT FOR CAPTURING COALMINE GAS.

   Inserted: "(a) General Rule.--For purposes of section 38, the coalmine gas capture credit for any taxable year is an amount equal to the product of--

   Inserted: "(1) the credit amount, and

   Inserted: "(2) the qualified credit coalmine gas captured which is attributable to the taxpayer.

   Inserted: "(b) Credit Amount.--For purposes of this section, the credit amount is $0.517 per 1,000 cubic feet of qualified coalmine gas captured.

   Inserted: "(c) Qualified Coalmine Gas Captured.--For purposes of this section--

   Inserted: "(1) In general.--The term 'qualified coalmine gas captured' means any coalmine gas which is--

   Inserted: "(A) captured or extracted by the taxpayer during the period -beginning after September 30, 2005, and ending before January 1, 2008, -and

   Inserted: "(B) utilized as a fuel source or sold by or on behalf of the taxpayer -to an unrelated person during such period.

   Inserted: "(2) Special rule for advanced extraction.--In the case of coalmine gas which is captured in advance of coal mining operations, the credit under subsection (a) shall be allowed only after the date the coal extraction occurs in the immediate area where the coalmine gas was removed.

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   Inserted: "(3) Noncompliance with pollution laws.--This paragraph shall not apply to the capture or extraction of coalmine gas from coal mining operations with respect to any period in which such coal mining operations are not in compliance with applicable State and Federal pollution prevention, control, and permit requirements.

   Inserted: "(4) Definitions.--

   Inserted: "(A) Coalmine gas.--For purposes of this paragraph, the term 'coalmine gas' means any methane gas which is--

   Inserted: "(i) liberated during or as a result of domestic coal mining -operations, or

   Inserted: "(ii) extracted up to 10 years in advance of domestic coal ---mining operations as part of a specific plan to mine a coal ----deposit.".

   Inserted: (b) Credit Treated as Part of General Business Credit.--Section 38(b) of the Internal Revenue Code of 1986, as amended by this Act, is amended by striking "plus" at the end of paragraph (24), by striking the period at the end of paragraph (24) and inserting ", plus", and by adding at the end the following new paragraph:

   Inserted: "(25) the coalmine gas capture credit determined under section 45O.".

   Inserted: (c) Clerical Amendment.--The table of sections for subpart D of part IV of subchapter A of chapter 1 of such Code, as amended by this Act, is amended by inserting after section 45N the following:

   Inserted: "Sec. 45O. Credit for capturing coalmine gas.".

   Inserted: (d) Effective Date.--The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.

   The amendment doesn't say where this goes; the clerk decides.

   Original wording

   At the appropriate place, insert the following:

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As printed