Coal Refuse Energy and Reclamation Tax Credit

Overview

The Coal Refuse Energy and Reclamation Tax Credit provides tax credits to eligible facilities which generate electricity by using coal refuse for power generation, control acid gases for emission control, and use ash produced by the facilities to reclaim mining-affected sites.

Uses

Tax credits may be applied against the tax liability of a qualified taxpayer which includes a person that owns an eligible facility, or is a transferor, purchaser, affiliate or assignee of a person to which a Coal Refuse Tax Credit certificate is issued. Tax credit awards shall be equal to $4 multiplied by the tons of qualified coal refuse used to generate electricity at an eligible facility in the previous calendar year. No more than 22.2% of the total amount of tax credits issued shall be awarded to a single facility in any fiscal year.

Funding

The commonwealth shall issue no more than $7,500,000 in tax credits in fiscal year 2016-2017 and $10,000,000 beginning in fiscal year 2017-2018.

Eligibility

Those eligible to apply are qualified taxpayers which generate electricity at an eligible facility by using coal refuse and use the ash produced by the facilities to reclaim mining- affected sites. Qualified Taxpayers must be subject to the Personal Income Tax, Corporate Net Income Tax, Capital Stock/Foreign Franchise Tax, Bank Shares Tax, Title Insurance Companies Shares Tax, Insurance Premiums Tax, Gross Receipts Tax, and Mutual Institutions Tax.

How to Apply

Qualified Taxpayers will apply through DCED’s electronic Single Application system. Applicants may also be required to submit additional information to document that a facility qualifies as an eligible facility and to document the amount of qualified coal refuse used to generate electricity at the facility.

Coal Refuse Energy and Reclamation Tax Credit Assignment Application

Coal Refuse Energy and Reclamation Tax Credits may be applied against the tax liability imposed on a taxpayer including Personal Income Tax, Corporate Net Income Tax, Capital Stock-Franchise Tax, Bank and Trust Company Shares Tax, Title Insurance Companies Shares Tax, Insurance Premiums Tax, Gross Receipts Tax or Mutual Thrift Institution Tax.

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