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terminated on September 20, 1991, upon expiration of the second
extension.
OPINION
Section 29(a) allows a tax credit for qualified fuels
produced by a taxpayer and sold to an unrelated person.
Section 29 includes "biomass" within its definition of "qualified
fuels". For petitioner's 1989 and 1990 tax years, biomass was
defined as "any organic material which is an alternate substance
(as defined in section 48(l)(3)(B)) other than coal (including
lignite) or any product of such coal." Sec. 29(c)(3). For
petitioner's 1991 tax year, biomass was defined as "any organic
material other than (A) oil and natural gas (or any product
thereof), and (B) coal (including lignite) or any product
thereof." Sec. 29(c)(3).
Petitioner bears the burden of proving its entitlement to
the credits. See Rule 142(a); New Colonial Ice Co. v. Helvering,
292 U.S. 435, 400 (1934). For the reasons discussed below, we
conclude that petitioner did not sell its qualified fuel and thus
is not entitled to the credits.
Petitioner contends that WTC leased "Area B" from petitioner
and that petitioner provided utilities to WTC as part of the
lease. Accordingly, petitioner contends that it "sold" biomass
to WTC, because petitioner "took on the role of a Utility
Company". Petitioner bases its contention on paragraph 10 of the
Agreement, which stated that WTC was to make a monthly payment of
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