,i #aafth ,,congress #ast ,session ,h4 ,r4 #biic ,,in ,,the ,,house ,,of ,,representatives ,may #bc1 #bjai,mr4 ,kelly of ,pennsylvania 7for himself and ,mr4 ,michael ,f4 ,doyle of ,pennsylvania7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to extend and modify the section #de credit for refined coal from steel industry fuel1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,steel ,industry ,preservation ,act4 #b4 ,extension and modification of credit for steel industry fuel 7a7 ,credit period 7#a7 ,in general ,section #de7;e77#h77;,d77ii77,,ii7 of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7,,ii7 ,credit period ,in lieu of the #aj-year period referred to in clauses 7i7 and 7ii77,,ii7 of subparagraph 7,a71 the credit period shall be the period beginning on the first date that the facility first produces steel industry fuel that is sold to an unrelated person after the date of the enactment of the ,steel ,industry ,preservation ,act1 and ending #aj years after such first date4 4 7#b7 ,conforming amendment ,section #de7;e77#h77;,d7 of such ,code is amended by striking clause 7iii7 and by redesignating clause 7iv7 as clause 7iii74 7b7 ,extension of placed-in-,service date ,section #de7;d77#h77;,a7 of such ,code is amended-- 7#a7 by striking 7or any modification to a facility72 7#b7 by striking placed in service before and inserting placed in service-- 7i7 before 2 7#c7 by striking and at the end and inserting or2 and 7#d7 by adding at the end the following new clause3 7ii7 after the date of the enactment of this clause and before the date that is #ah months after such date1 and 4 7c7 ,clarifications 7#a7 ,steel industry fuel ,section #de7;c77#g77;,c77i77,i7 of such ,code is amended by inserting 1 or a blend of coal and petroleum coke1 or other coke feedstock after on coal4 7#b7 ,ownership interest ,section #de7;d77#h7 of such ,code is amended by adding at the end the following new flush sentence3 ,with respect to a facility producing steel industry fuel1 no person 7including a ground lessor1 customer1 supplier1 or technology licensor7 shall be treated as having an ownership interest in the facility or as otherwise entitled to the credit allowable under this section with respect to such facility solely because such person's rent1 license fee1 or other entitlement to net payments from the owner of such facility is measured by a fixed dollar amount or a fixed amount per ton1 or otherwise determined without regard to the profit or loss of such facility4 4 7#c7 ,production and sale ,section #de7;e77#h77;,d7 of such ,code1 as amended by subsection 7a77#b71 is amended by redesignating clause 7iii7 as clause 7iv7 and by inserting after clause 7ii7 the following new clause3 7iii7 ,production and sale ,the owner of a facility producing steel industry fuel shall be treated as producing and selling steel industry fuel where that owner manufactures such steel industry fuel from coal1 a blend of coal and petroleum coke1 or other coke feedstock to which it has title4 ,the sale of such steel industry fuel by the owner of the facility to a person who is not the owner of the facility shall not fail to qualify as a sale to an unrelated person solely because such purchaser may also be a ground lessor1 supplier1 or customer4 4 7d7 ,election ,to increase credit in lieu of steel industry fuel deductions ,section #de7;e77#h7 of such ,code is amended by adding at the end the following new subparagraph3 7,e7 ,election for increased credit in lieu of deductions for steel industry fuel ,in the case of a taxpayer who produces steel industry fuel-- 7i7 ,in general ,at the election of the taxpayer-- 7,i7 no deduction shall be allowed with respect to expenses made in connection with the production and sale of steel industry fuel for such taxable year which are otherwise deductible under this chapter 7determined without regard to this subparagraph71 7,,ii7 no expense made in connection with the production of and sale of steel industry fuel which is otherwise chargeable to capital account in such taxable year shall be so charged1 and 7,,iii7 the credit determined under this section 7without regard to this subparagraph7 for such taxable year shall be increased by an amount equal to the product of the sum of the amounts to which subclauses 7,i7 and 7,,ii7 apply and the maximum rate of tax applicable under section #a or #aa7;b71 as applicable to the taxpayer in such taxable year4 7ii7 ,application to partnerships and ,s corporations ,in the case of a partnership or ,s corporation1 the election shall be made at the partnership or ,s corporation level4 7iii7 ,election ,an election under this subparagraph for any taxable year shall be made not later than the time for filing the return of tax for such year 7including extensions71 in such manner as the ,secretary may prescribe4 ,such an election1 once made1 shall be irrevocable4 4 7e7 ,specified credit for purposes of alternative minimum tax exclusion ,section #ch7;c77#d77;,b77iv77,,ii7 of such ,code is amended by inserting 7in the case of a refined coal production facility producing steel industry fuel1 during the credit period set forth in section #de7;e77#h77;,d77ii77,,ii77 after service4 7f7 ,application of certain rules to steel industry fuel 7#a7 ,activity not engaged in for profit ,section #ahc of such ,code is amended by adding at the end the following new subsection3 7f7 ,exception ,this section shall not apply to any deduction with respect to the production of steel industry fuel 7as defined in section #de7;c77#g77;,c774 4 7#b7 ,application of economic substance doctrine 7,a7 ,in general ,section #ggja7o7 of such ,code is amended by adding at the end the following new paragraph3 7#f7 ,non-application to steel industry fuel ,the economic substance doctrine shall not apply to any transaction to the extent such transaction relates to steel industry fuel 7as defined in section #de7;c77#g77;,c774 4 7,b7 ,conforming amendment ,section #ggja7o77#e77;,c7 of such ,code is amended by striking ,the determination and inserting ,except as provided in paragraph 7#f71 the determination4 7g7 ,effective dates 7#a7 ,in general ,except as provided in paragraph 7#b71 the amendments made by this section shall apply to fuel produced and sold after the date of the enactment of this ,act1 in taxable years ending after such date4 7#b7 ,application of economic substance rules ,the amendments made by subsection 7f77#b7 shall apply to transactions entered into after the date of the enactment of this ,act4