1545-2158 - Supporting Statement

SUPPORTING STATEMENT
1. CIRCUMSTANCES NECESSITATING COLLECTION OF INFORMATION
This notice sets forth interim guidance pending the issuance of regulations relating to the tax credit under § 45 of the
Internal Revenue Code (Code) for refined coal.

2. USE OF DATA
Taxpayer must file certification that its refined coal has achieved 'qualified emissions reduction' with its tax return in
order to claim the production tax credit for refined coal.

3. USE OF IMPROVED INFORMATION TECHNOLOGY TO REDUCE BURDEN
N/A

4. EFFORTS TO IDENTIFY DUPLICATION
We have attempted to eliminate duplication within the agency wherever possible. IRS did consult with EPA in
developing the CEMS test. We recognize that not every facility may have a CEMS unit, but the testing can be done on
any commercial boiler with a CEMS unit installed even if the coal is not ultimately sold for use in that boiler. Also
CEMS use is optional. Taxpayers may use it if they want to rely on their own test without having the IRS come in to
second-guess their testing procedures. Other testing methods are permitted but if alternative methods are used the
IRS reserves the right to examine to make sure the required emissions reduction has been achieved.

5. METHODS TO MINIMIZE BURDEN ON SMALL BUSINESSES OR OTHER SMALL ENTITIES
N/A

6. CONSEQUENCES OF LESS FREQUENT COLLECTION ON FEDERAL PROGRAMS OR
POLICY ACTIVITIES
N/A

Form 14029 (Rev. 4-2009) Catalog Number 51944B Page 4

Department of the Treasury–Internal Revenue Service

7. SPECIAL CIRCUMSTANCES REQUIRING DATA COLLECTION TO BE INCONSISTENT
WITH GUIDELINES IN 5 CFR 1320.5(d)(2)
N/A

8. CONSULTATION WITH INDIVIDUALS OUTSIDE OF THE AGENCY ON AVAILABILITY
OF DATA, FREQUENCY OF COLLECTION, CLARITY OF INSTRUCTIONS AND FORMS,
AND DATA ELEMENTS
The IRS and the Treasury Department invite comments concerning section 6.03 of this notice relating to emission
reduction testing methods. Comments should refer to Notice 2009-90 and be submitted to:
Internal Revenue Service
CC:PA:LPD:PR (Notice 2009- )
Room 5203
P. O. Box 7604
Ben Franklin Station
Washington, DC 20044
In response to the Federal Register notice (75 FR 5854), dated February 4, 2010, we received no comments during
the comment period regarding Notice 2009-90.

9. EXPLANATION OF DECISION TO PROVIDE ANY PAYMENT OR GIFT TO RESPONDENTS
N/A

10. ASSURANCE OF CONFIDENTIALITY OF RESPONSES
Generally, tax returns and tax return information are confidential as required by 26 U.S.C. 6103.

11. JUSTIFICATION OF SENSITIVE QUESTIONS
N/A

12. ESTIMATED BURDEN OF INFORMATION COLLECTION
We estimate that there are 100 responses per year that will elect the tax credit under § 45 of the Internal Revenue
Code (Code) for refined coal. We estimate that it will take an average of 15 hours per response for a total burden
estimated to be 1,500 hours.

Estimates of the annualized cost to respondents for the hour burdens associated with the information collection are not
available at this time.

Form 14029 (Rev. 4-2009) Catalog Number 51944B

Page 5

Department of the Treasury–Internal Revenue Service

13. ESTIMATED TOTAL ANNUAL COST BURDEN TO RESPONDENTS
As suggested by OMB, our Federal Register notice dated February 4, 2010 (75 FR 5854), requested public comments
on estimates of cost burden that are not captured in the estimates of burden hours, i.e., estimates of capital or start-up
costs and costs of operation, maintenance, and purchase of services to provide information. However, we did not
receive any response from taxpayers on this subject. As a result, estimates of the cost burdens are not available at this
time.

14. ESTIMATED ANNUALIZED COST TO THE FEDERAL GOVERNMENT
N/A

15. REASONS FOR CHANGE IN BURDEN
There is no change to the paperwork burden associated with this collection. This submission is being made for
renewal purposes only.

16. PLANS FOR TABULATION, STATISTICAL ANALYSIS AND PUBLICATION
N/A

17. REASONS WHY DISPLAYING THE OMB EXPIRATION DATE IS INAPPROPRIATE
We believe that displaying the OMB expiration date is inappropriate because it could cause confusion by leading
taxpayers to believe that the regulation sunsets as of the expiration date. Taxpayers are not likely to be aware that the
Service intends to request renewal of OMB approval and obtain a new expiration date before the old one expires.

18. EXCEPTIONS TO THE CERTIFICATION STATEMENT ON OMB PRA SUBMISSION FORM
N/A

19. REASON FOR EMERGENCY SUBMISSION

Form 14029 (Rev. 4-2009) Catalog Number 51944B

Page 6

Department of the Treasury–Internal Revenue Service