Alexander, Frist, Corker Praise $130 Million Clean Energy Tax Credit For Eastman Chemical Company

Incentive Will Deploy Cleaner, More Efficient Energy Technologies

Posted on November 30, 2006

U.S. Sens. Bill Frist (R-Tenn.) and Lamar Alexander (R-Tenn.) today announced that Eastman Chemical Company of Kingsport, Tenn., and TX Energy, LLC, have been awarded a federal Investment Tax Credit of $130 million for a proposed industrial coal gasification project. U.S. Sen.-elect Bob Corker (R-Tenn.) joined Frist and Alexander in praising the announcement. The tax credits will support a proposed industrial gasification project to produce materials for Eastman's Longview, Texas, site and further the development of industrial coal gasification technologies. Supporting these types of clean coal technologies will both improve our environment and help to make America more energy independent. “I’m very pleased that Eastman Chemical, a Tennessee corporation serving as a leader in clean energy technologies, will receive these tax incentives,” said Frist. “Eastman has more than 20 years of experience using gasification technology to make their products in a more efficient, less costly manner – which keeps jobs here at home. Investment in new industrial gasification facilities will make America more secure by increasing our energy independence and help generate a cleaner, more reliable energy supply.” "Since 1983 Eastman has been at the forefront of using gasification in chemical production,” said Alexander, who recently chaired an Energy Committee hearing on industrial gasification of fossil resources at which Eastman testified. “I am pleased that they are now taking the next step in gasification and trying to reduce our nation’s demand for natural gas in an environmentally sensitive way. Through efforts like the new investment tax credits that were included in the Energy Policy Act of 2005 our country can expand its efforts to use fossil fuels in the cleanest and safest ways possible." “I commend Sen. Frist and Sen. Alexander for helping secure these significant tax credits to support Eastman’s innovative efforts in clean coal technology,” said Corker. “I’m proud that Eastman is helping lead the way toward making our state and our country more independent of foreign oil, and I look forward to working on the issue more when the 110th Congress convenes in January.” Eastman has successfully used coal gasification technology to produce chemicals at its Kingsport facility since 1983. The company will provide project development support, engineering support, and ongoing operational support for the proposed industrial gasification facility in Texas. The Energy Policy Act of 2005, passed by Congress and signed into law more than a year ago, authorized the Treasury Department to provide tax credits as incentives to help move clean energy technologies such as coal gasification to the marketplace. The legislation included $1.65 billion in tax credits for clean coal projects nationwide.