Coal Production Tax Incentive Act of 1988

Coal Production Tax Incentive Act of 1988 - Amends the Internal Revenue Code to: (1) increase from eight percent to ten percent the percentage depletion allowance for coal; (2) include 50 percent rather than 100 percent of the coal percentage depletion allowance as a tax preference item for alternative minimum tax purposes; (3) permit expensing of coal exploration and development costs; and (4) allow reclamation fees paid by coal operators to be credited against environmental tax liability.