Carson Dismayed About Changes in Nonconventional Fuel Credit Availability

[1] I am writing to convey my concern about a possible change in the Section 29 tax credit program for synthetic fuel from coal. This proposed change would greatly impact a utility in my district, Citizens Gas and Coke (Citizens) of Indianapolis, Indiana.

[2] Citizens is a significant contributor to the State of Indiana's economy and job market. The company provides energy service to 258,000 customers and employs nearly 1,000 Hoosiers within my congressional district.

[3] Since the extension of the Internal Revenue Service (IRS) program in 1996, and relying on certain IRS rulings, companies, such as Citizens, have invested hundreds of millions of dollars in their plants. These plants have served to accomplish the original intent of the program, which is to aid in making the U.S. more energy independent. Other benefits of producing synthetic fuel include better handling characteristics, reduction of dust and coal fines generation, and improved yields of finished product where synthetic fuel is used as a raw material in production applications.

[4] If it is believed that there are abuses to the Section 29 program, the IRS should audit those potential abusers and enforce the existing guidelines that have been developed over time.

[5] To discontinue this important program now will impede efforts in the United States to fully utilize our own energy reserves and place an undue hardship on companies that have invested toward that end.

[6] I appreciate your attention to this matter.

Sincerely,