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SW: →Coal: - add section
The study singled out the following major subsidies benefiting the coal industry:
* Credit for Production of Nonconventional Fuels (annual subsidy: $14 billion)- IRC Section 45K. This provision provides a tax credit for the production of certain fuels. Qualifying fuels include: oil from shale, tar sands; gas from geopressurized brine, Devonian shale, coal seams, tight formations, biomass, and coal-based synthetic fuels. This credit has historically primarily benefited coal producers.
*Characterizing Coal Royalty Payments as Capital Gains (annual subsidy: $986 million) - IRC Section 631(c). Income from the sale of coal under royalty contract may be treated as a capital gain rather than ordinary income for qualifying individuals. (the The 2011 report, [http://www.dblinvestors.com/documents/DBL_energy_subsidies_paper.pdf "What Would Jefferson Do?: The Historical Role of Federal Subsidies in Shaping America’s Energy Future"] calculated this subsidy totaled over $1.3 billion in government tax expenditures from 2000 – 2009.).
* Exclusion of Benefit Payments to Disabled Miners (annual subsidy: $438 million) - 30 U.S.C. 922(c). Disability payments out of the Black Lung Disability Trust Fund are not treated as income to the recipients.
* Exclusion of Alternative Fuels from Fuel Excise Tax (annual subsiy: $343 million) - IRC Section 6426(d). This section applies to liquified petroleum gas (LPG), P-series fuels (defined at 42 U.S.C. 13211(2)), compressed natural gas (CNG), liquefied natural gas (LNG), liquefied hydrogen,3 liquid coal, and liquid hydrocarbon from biomass.
