Coal-to-Liquid Fuel Promotion Act of 2007

Coal-to-Liquid Fuel Promotion Act of 2007 - Amends the Energy Policy Act of 2005 to instruct the Secretary of Energy to: (1) make loan guarantees to certain large-scale coal-to-liquid facilities to produce liquid transportation fuel; (2) establish a loan program to pay the federal share of the cost of obtaining services necessary for the planning, permitting, and construction of a coal-to-liquid facility; and (3) promulgate regulations for development of coal-to-liquid manufacturing facilities on federal land.

Amends the Energy Policy and Conservation Act to instruct the Secretaries of Energy and of Defense to study and report to Congress on the feasibility and suitability of maintaining coal-to-liquid products in the Strategic Petroleum Reserve (Reserve).

Authorizes the Secretary to: (1) construct storage facilities in the vicinity of pipeline infrastructure and at least one military base; and (2) place coal-to-liquid products in storage in the Reserve.

Authorizes the use of certain funds by the Air Force Research Laboratory to continue support efforts to test, qualify, and procure synthetic fuels developed from coal for aviation jet use.

Amends Armed Forces law to authorize the Secretary of Defense to enter into agreements to develop and operate coal-to-liquid facilities on or near military installations.

Instructs the Secretary of Energy to implement a research and demonstration program to evaluate the emissions of the use of Fischer-Tropsch transportation fuel, including diesel and jet fuel.

Amends the Internal Revenue Code to allow: (1) an income tax credit for investment in coal-to-liquid fuels projects; (2) taxpayer election to expense certain coal-to-liquid fuels facilities; (3) an extension of the alternative fuel credit for fuel derived from coal through the Fischer-Tropsch process; (4) an enhanced credit for certain projects using qualified carbon dioxide; and (5) an enhanced oil, natural gas, and coalbed methane recovery, and capture and sequestration credit against the alternative minimum tax.