A bill to amend the Internal Revenue Code of 1986 to increase, expand, and extend the credit for hydrogen-related alternative fuel vehicle refueling property and to increase the investment credit for more efficient fuel cells.

Summary: Amends the Internal Revenue Code, with respect to the tax credit for alternative fuel vehicle refueling property expenditures, to: (1) increase the rate of such credit from 30% to 50% for hydrogen-related alternative fuel vehicles, (2) eliminate the dollar limitation on such credit for hydrogen-related vehicles, (3) allow such credit for off-highway motor vehicles designed for carrying or towing loads, and (4) extend such credit through 2016 for property related to hydrogen.

Increases the 30% energy tax credit for investment in fuel cell property to: (1) 50% for fuel cell property used in a combined heat and power system having an energy efficiency percentage of 70% or more, and (2) 40% for fuel cell property having an energy efficiency percentage of at least 60% but less than 70%.

SECTION 1. EXPANSION OF CREDIT FOR HYDROGEN-RELATED ALTERNATIVE FUEL 
              VEHICLE REFUELING PROPERTY.

    (a) Increase in Credit Percentage.--Subsection (a) of section 30C 
of the Internal Revenue Code of 1986 (relating to alternative fuel 
vehicle refueling property credit) is amended by inserting ``(50 
percent in the case of property relating to hydrogen)'' after ``30 
percent''.
    (b) No Dollar Limitation.--Subsection (b) of section 30C of such 
Code is amended by adding at the end the following flush sentence:
``The preceding sentence shall not apply in the case of property 
related to hydrogen.''.
    (c) Credit Allowable for Refueling Property for Certain Motor 
Vehicles Designed for Carrying or Towing Loads.--
            (1) In general.--Subsection (c) of section 30C of such Code 
        is amended by striking ``and'' at the end of paragraph (1), by 
        striking the period at the end of paragraph (2) and inserting 
        ``, and'', and by adding at the end the following new 
        paragraph:
            ``(3) with respect to property described in section 
        179A(d)(3)(A) for the storage or dispensing of fuel at least 85 
        percent of the volume of which consists of hydrogen, the 
        reference to motor vehicles in section 179A(d)(3)(A) included 
        specified off-highway vehicles.''.
            (2) Specified off-highway vehicles defined.--Subsection (e) 
        of section 30C of such Code is amended by adding at the end the 
        following new paragraph:
            ``(7) Specified off-highway vehicles.--For purposes of 
        subsection (c)(3)--
                    ``(A) In general.--The term `specified off-highway 
                vehicles' means all types of vehicles propelled by 
                motor that are designed for carrying or towing loads 
                from one place to another, regardless of the type of 
                load or material carried or towed and whether or not 
                the vehicle is registered or required to be registered 
                for highway use, including fork lift trucks used to 
                carry loads at railroad stations, industrial plants, 
                and warehouses.
                    ``(B) Exceptions.--Such term does not include--
                            ``(i) farm tractors, trench diggers, power 
                        shovels, bulldozers, road graders or rollers, 
                        and similar equipment which does not carry or 
                        tow a load, and
                            ``(ii) any vehicle that operates 
                        exclusively on a rail or rails.''.
    (d) Credit for Hydrogen Property Extended Through 2016.--Paragraph 
(1) of section 30C(g) of such Code is amended by striking ``December 
31, 2014'' and inserting ``December 31, 2016''.
    (e) Effective Date.--
            (1) In general.--The amendments made by subsections (a) and 
        (c) shall apply to property placed in service after the date of 
        the enactment of this Act in taxable years ending after such 
        date.
            (2) Repeal of limitation.--The amendment made by subsection 
        (b) shall apply to taxable years beginning after the date of 
        the enactment of this Act.
            (3) Hydrogen refueling property.--The amendment made by 
        subsection (d) shall apply to property placed in service after 
        December 31, 2014.

SEC. 2. INCREASED INVESTMENT CREDIT FOR MORE EFFICIENT FUEL CELLS.

    (a) Increased Percentage.--
            (1) In general.--Subparagraph (A) of section 48(a)(2) of 
        the Internal Revenue Code of 1986 (relating to energy 
        percentage) is amended by redesignating clauses (i) and (ii) as 
        clauses (iii) and (iv), respectively, and by inserting before 
        clause (iii), as so redesignated, the following new clauses:
                            ``(i) 50 percent in the case of qualified 
                        fuel cell property used in a combined heat and 
                        power system having an energy efficiency 
                        percentage (as defined in section 48(c)(3)(C)) 
                        of 70 percent or more,
                            ``(ii) 40 percent in the case of qualified 
                        fuel cell property used in such a system having 
                        an energy efficiency percentage (as so defined) 
                        of at least 60 percent but less than 70 
                        percent,''.
            (2) Conforming amendments.--
                    (A) Subclause (I) of section 48(a)(2)(A)(iii) of 
                such Code, as redesignated by paragraph (1), is amended 
                by inserting ``not described in clause (i) or (ii)'' 
                before the comma.
                    (B) Clause (iv) of section 48(a)(2)(A) of such 
                Code, as so redesignated, is amended by striking ``to 
                which clause (i) does not apply'' and inserting ``to 
                which none of the preceding clauses apply''.
    (b) Increased Maximum Credit.--Subparagraph (B) of section 48(c)(1) 
of such Code is amended to read as follows:
                    ``(B) Limitation.--In the case of qualified fuel 
                cell property placed in service during the taxable 
                year, the credit otherwise determined under subsection 
                (a) for such year with respect to such property shall 
                not exceed an amount equal to--
                            ``(i) in the case of property described in 
                        subsection (a)(2)(A)(i), $2,500 for each 0.5 
                        kilowatt of capacity of such property,
                            ``(ii) in the case of property described in 
                        subsection (a)(2)(A)(ii), $2,000 for each 0.5 
                        kilowatt of capacity of such property, and
                            ``(iii) in the case of property described 
                        in subsection (a)(2)(A)(iii)(I), $1,500 for 
                        each 0.5 kilowatt of capacity of such 
                        property.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.