National Coal Research, Development, and Demonstration Act of 2003

National Coal Research, Development, and Demonstration Act of 2003 - Directs the Secretary of Energy to: (1) perform an assessment that identifies cost and performance goals of technologies permitting continued cost-competitive use of coal for electricity generation, as chemical feedstocks, and as transportation fuel in 2007, 2015, and the years after 2020; and (2) implement a technology research, development, and demonstration program to facilitate production and generation of coal-based power through methods and equipment under specified Federal law.

Prescribes conditions and criteria for the authorization of appropriations for a clean coal power initiative program.

Instructs the Secretary to: (1) fund coal energy generation projects that advance efficiency, environmental performance, and cost competitiveness well beyond the level of technologies in operation as of the date of enactment of this Act; and (2) award competitive, merit-based grants to universities for the establishment of Centers of Excellence for Energy Systems of the Future.

Amends the Internal Revenue Code of 1986 to prescribe credits against tax for: (1) production from a qualifying clean coal technology unit; and (2) production from and for investment in a qualifying advanced clean coal technology unit. Prescribes guidelines for the treatment of persons not able to use the entire credit relating to clean coal technology.