Industrial Energy Efficiency and Fuel Conversion Tax Incentive Act of 1980

Industrial Energy Efficiency and Fuel Conversion Tax Incentive Act of 1980 - Amends the Internal Revenue Code to allow an additional 20 percent investment tax credit for qualified industrial energy property. Provides for up to a three-year carryback and a one-year carryover of any excess credit amounts.

Defines "qualified industrial energy property" as any depreciable equipment used by the taxpayer as an integral part of modification to, or replacement of, all or part of an existing facility, process, or item of equipment, but only if the modification or replacement results in the utilization of less energy per unit of output and does not increase the amount of oil and natural gas consumed. Requires such property either: (1) to result directly in energy savings; (2) to result in conversion to a substance other than oil or natural gas, or a derivative, as a fuel or feedstock; or (3) to be part of, physically attached to, or otherwise directly associated with such energy saving property.

Limits such credit to: (1) 20 percent of the qualified investment; or (2) $55 for each barrel of energy saved by the investment. Defines barrel of energy as equal to 5,800,000 Btu's. Disallows such credit if it amounts to less than $11 for each barrel of oil or oil equivalent saved per year.