RE: GAS-L: Gasification tax credits

["OConor.Richard" <Richard.OConor@minergy.com>]

Title: RE: GAS-L: Gasification tax credits

Hi, A few weeks ago, somebody posted an article regarding the limited availablity of natural gas in the U.S.  Does anyone have a copy of this article or any suggestions where I can find it?

-----Original Message-----
From: Tom Reed [mailto:tombreed@attbi.com]
Sent: Monday, October 21, 2002 12:56 AM
To: Tom Miles
Cc: gasification; Stoves
Subject: GAS-L: Gasification tax credits

Dear Tom M:

Thanks for the elucidation on tax credits below.  It came simultaneously
with Ron asking for elucidation on tax credits.  I'm filing it by answering
and forwarding...

~~~~
Let me (again) plead for all to put meaningful SUBJECT headings on letters
that diverge significantly from an earlier string.  That way one can easily
search past Emails in private files for particular subjects.  "TERMINOLOGY"
(Tom's heading) wouldn't have turned up TAX CREDITS, but by resending this
under that subject name I'll be able to find it easily....

Please try ...                    TOM REED

----- Original Message -----
From: "Tom Miles" <tmiles@trmiles.com>
To: "Stoves" <stoves@crest.org>
Sent: Sunday, October 20, 2002 11:09 AM
Subject: Re: Re "terminology"

> Alternative Fuel Production Credit (Section 29 of the Internal Revenue
Code), or
> "gasification tax credit"
>
> The credit started in 1980. It is due to end December 31, 2002 although
credits on
> some facilities will be received until 2008. I believe the period for
qualification
> for the tax credit expired in June 1998 in it's last extension. By that
time
> enterprising tax attorneys had broadened the definition of a gasifier to
include
> boilers operating in a staged combustion mode with the air required for
"gasifying"
> coming up through the grate. It has also been used extensively for methane
from
> landfills. Other extensions have been proposed but none have been approved
as far as
> I know.
>
> One positive effect of the credit was to force many small boiler makers
who wanted to
> take advantage of the credit to make their systems more efficient. There
were never
> more than half a dozen large industrial scale or independent power systems
built
> under the credit. Most of these were in the period 1984-1990.  To my
knowledge only
> one is still operating. For some installations it provided substantial
income. See
> http://www.drykiln2000.com/capstone_turbine/section29.htm
>
> Following is an excerpt from a March 1998 BERA description of tax credits
found at
> http://www.bera1.org/3-26-98.html
> "a tax credit is exactly that, a direct reduction in the tax that is due
on taxable
> income. An example is the biomass gasification tax credit under IRC
Section 29. The
> fuel gases from landfill gas recovery systems and biomass gasifiers
qualify for the
> credit as long as certain conditions are satisfied. The amount of the
credit is
> inversely related to the price of oil; when the price of oil increases,
the credit is
> reduced. For 1997, it was $1.05/MMBtu of fuel gas produced and sold to an
independent
> third party, so the credit can be substantial." See also
> http://www.eia.doe.gov/oiaf/servicerpt/subsidy/box_txt.html and
> http://spee.org/pdfs/taxs29.pdf http://www.lfgtech.com/tax_credits.htm
etc.
>
> Tom Miles
>
>
> ----- Original Message -----
> From: "Ron Larson" <ronallarson@qwest.net>
> To: <andrew.heggie@dtn.ntl.com>; "Stoves" <stoves@crest.org>; "Paul S.
Anderson"
> <psanders@ilstu.edu>; "Crispin" <crispin@newdawn.sz>; "Mike Antal"
> <mantal@hawaii.edu>; "Tom Reed" <tombreed@attbi.com>; "Dean Still"
<dstill@epud.net>
> Sent: Saturday, October 19, 2002 9:38 PM
> Subject: Re "terminology"
>
>
> > Hi all:
> >
> > This is intended to agree with most everything I hear from Andrew and
> > mostly from Tom - as a part of the terminology thread started by Paul
(and I
> > have changed the subject heading back to
> > "terminology".  I am not happy with Paul's use of the word "gasifier".
> >
> > 1.  Tom Reed said today re terminology:  " The distinction is not
trivial
> > since there are often tax credits for
> > gasification and not for combustion of biomass.  Testifying in court, I
> > would say that if in principal you can put a septum between the
gasification
> > section and the combustion section and remove samples of combustible gas
> > requiring more air, it is a gasifier.  If sufficient air is supplied in
one
> > step for "substantially" complete combustion (like the pellet stoves),
it is
> > a combustor.
> >
> > (RWL1):  I wish that we had this tax credit problem to contend with.  If
we
> > did, I might change some of the following.  I would say that Tom's
remark is
> > true on the gasification list - where I think they almost never use the
term
> > "pyrolysis".  Gasifying people, as Andrew has emphasized, try for a
minimum
> > amount of charcoal, for continuous operation, - and often are adding
steam.
> > You (Paul) and I (and Andrew a lot) are not doing any of these.  So
> > everything Tom says about the septum is true - but the septum criterion
also
> > applies to pyrolysis units - which I claim are a different animal from
> > gasifiers.
>
>
>
>
> -
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>
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>
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>
>

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>