CHAPTER 9 SECTION 29—ITS UNCERTAIN FUTURE

• Jurisdiction: United States

Coalbed Gas Development
(Apr 1992)
CHAPTER 9
SECTION 29—ITS UNCERTAIN FUTURE
Reba Raffaelli ^*
Griffin/Johnson and Associates
Washington, D.C.

The non-conventional fuel tax credit, known as Section 29, was originally enacted in the Windfall Profit Tax Act of 1980, with a requirement that the property generally be placed in service before January 1, 1990. In the Technical and Miscellaneous Revenue Act of 1988, the placed in service date was extended from January 1, 1990, to January 1, 1991. In the Omnibus Budget Reconciliation Act of 1989, the placed in service date was extended from January 1, 1991 to January 1, 1993.

The issue is whether Section 29 will be extended again. The simple answer to that is no, unless everyone here works to let congress know how important this provision is to you, your companies and communities. Tax code provisions are not enacted unless the Members of Congress believe that the provisions are working, and that they are needed. It is up to the groups that benefit from the provisions to educate their members on the importance of the provision. In this case it is the extension of Section 29.

In the State of the Union address the President challenged Congress to enact a tax bill before March 20th to stimulate the economy. The Democrats delivered the President an economic growth and tax fairness package. Since the tax package increased the top tax rate, the President vetoed the package.

Section 29 was not part of that package. It was not in the President's original package, nor was it...