Coal-to-Liquids favoured by tax breaks in the USA

In America, the Senate Finance Committee has unanimously approved an amendment offered by Senators Jim Bunning (R-Ky.) and Jay Rockefeller (D-W.Va.) that extends until 2010 a critical alternative fuels tax credit that will help accelerate the production of clean, domestic coal-to-liquid (CTL) fuels. Finance Committee members approved adding the CTL tax credit amendment on October 4 to a larger tax package primarily focused on aiding the reauthorization of federal agricultural support programs. The amendment extends an existing 50% per gallon fuel excise tax credit for CTL until 2010 and requires CTL producers to capture and store 50% of carbon dioxide emissions. CTL producers could be required to capture and store 75% of carbon dioxide emissions should an independent arbitration panel determine that such a level is commercially feasible. Without an extension, the tax credit, created by the Energy Policy Act of 2005, is set to expire in September 2009.

National Mining Association President and CEO Kraig R. Naasz: "Looking forward, the CTLC (Coal-To-Liquids Coalition) will continue working with all Senate CTL supporters to ensure this tax credit extension is signed into law."